What Caused the MCX Trading Halt for Over Four Hours?
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Synopsis
On October 28, MCX trading was halted for over four hours due to a technical glitch, marking the longest pause in its history. This incident has raised questions about the exchange's trading infrastructure. Stay tuned for insights into market reactions and expert analysis on future trends.
Key Takeaways
- MCX trading halted for over four hours.
- Technical glitch identified as the cause of disruption.
- Trading operations shifted to Disaster Recovery site.
- Investigation into the incident has been prioritized.
- Market reaction was cautious with declines in major indices.
Mumbai, Oct 28 (NationPress) The Multi-Commodity Exchange (MCX) experienced a trading interruption lasting over four hours on Tuesday due to a technical issue, setting a record for the longest trading pause in the platform's history, according to an exchange announcement. Trading was slated to commence at 9:30 a.m., but was delayed after a system fault was identified. The exchange subsequently transitioned operations to its Disaster Recovery (DR) site, with trading resuming at 1:25 p.m.
MCX stated, "All trading systems are now operating normally."
Furthermore, they announced, "An investigation into the issue has been prioritized. We are dedicated to uncovering the root cause and executing essential corrective actions. Updates regarding our discoveries and measures will be communicated in due course."
The exchange also conveyed its apologies for the disruption, expressing gratitude to market participants for their patience and understanding.
This incident marks the second major technical failure for the nation's largest commodity exchange in 2025, raising questions about the reliability of its trading framework.
In the meantime, Indian stock markets closed lower on Tuesday following a turbulent trading day, as investors took profits in certain sectors and adopted a cautious stance.
The Sensex fell by 150.68 points, or 0.18 percent, concluding at 84,628.16, while the Nifty dropped 29.85 points, or 0.11 percent, finishing at 25,936.20.
An analyst remarked, "The overall chart setup on the daily timeframe remains solid, with the Nifty trading well above the 21EMA, maintaining a bullish outlook."
They added, "The RSI is showing a bullish crossover and remains in a high momentum zone. In the near term, the index might experience a substantial rally as momentum builds above 26,000."
"On the upper side, resistance is noted at 26,300, while support is positioned at 25,850," stated an expert.
Point of View
It is imperative to acknowledge the impact of the recent technical disruption on MCX trading. This incident raises significant concerns regarding the robustness of trading platforms, which are essential for maintaining investor confidence in India’s financial markets. The response and corrective measures taken by MCX will be crucial in restoring trust among market participants.
NationPress
26/12/2025
Frequently Asked Questions
What caused the MCX trading halt?
The trading pause was due to a technical glitch that was detected shortly before the scheduled start time.
How long did the trading halt last?
The trading on MCX was halted for over four hours.
What measures is MCX taking following the disruption?
MCX has initiated a priority investigation to determine the cause of the technical issue and is committed to implementing corrective actions.
How did the stock markets react on the same day?
Indian stock markets ended lower after a volatile session, with the Sensex and Nifty both witnessing declines.
What is the outlook for the Nifty index?
Analysts suggest that the Nifty may experience a decent rally if momentum picks up above 26,000, with resistance noted at 26,300.
