Technology

The speed and efficiency with which large trades may be executed through electronic trading systems provide significant benefits to market participants. However, these characteristics can also exacerbate the adverse consequences of trades executed through such systems that, in light of the prevailing market for a particular commodity, are clearly erroneous. These consequences may extend beyond the participants to the trade and even the contract that is the subject of the trade, and affect the integrity of the market as a whole. Market integrity is enhanced; therefore, when the exchanges that operate electronic trading systems have in place well-defined policies and procedures pursuant to which requests to cancel clearly erroneous trades may be promptly considered and resolved.

• Price Limits. To reduce the number of erroneous trades that could be effected through an electronic trading system, exchanges should consider implementing price limits or similar controls, which would reject, or at a minimum require a market participant to reconfirm, any order outside such limits prior to execution.
• Defined No-Bust Range. To assure that only erroneous trades that may significantly and adversely affect other market participants are subject to cancellation, exchanges should adopt a "no-bust range" within which price range trades may not be subject to cancellation even if executed in error.
• Timing for Resolution. To assure the prompt resolution of requests to cancel erroneous trades, exchanges should establish narrow time frames within which (1) a party may request that a trade be cancelled, and (2) the exchange determines whether to cancel the trade or take other appropriate action.
• Notice to the Market. To assure that market participants are aware that an erroneous trade may be cancelled, exchanges should implement procedures to provide prompt notice to the marketplace of both a request to cancel a trade and the exchange's decision with respect to such request.
• Effect on Other Orders. To avoid uncertainty among market participants, exchanges should adopt policies that identify the types of other transactions that will be cancelled if an erroneous trade is cancelled, i.e., contingency orders and stop orders as a result of the erroneous trade.
• Extent. Electronic trade attract to that point which is not executed as a trade. Executed order can't be cancelled, and accountability is with client or broker itself.

MEX's electronic platform is the gateway to an open marketplace-one in which each participant has access to real-time price discovery and trading functionality. It is the first marketplace to offer electronic access to futures market, allowing participants across the globe to optimize trading operations and strategies through seamless execution on a single platform.

Electronic trading is available through a variety of interface alternatives, including MEX's Internet-based front-end, independent software vendors (ISVs) and brokerage firms. Regardless of the interface method chosen, participants can:

• View all quotes posted in real time
• Trade on quotes posted by others
• Post prices and quantities for others to trade
• View complete trade ticker for all transactions

MEX has tie up with kapp software private limited India. Expect global standard of data server technology, client trading platform, and other related requirements, kappsoft is leveraged to develop appropriate trade and data technology for trader's convenience.