(Resolved with MCX) Incident Report: Trading on MCX Commodities on 16 Oct

Dear All,

MCX went live with its new Trading Platform - Commodity Derivatives Platform from Monday 16th October 2023. On 16 Oct, the Trading on MCX commenced at 10:45 AM instead of usual 9:00 AM.

While we went live and trading opened at 10:45 AM, we noticed delays in getting updates of trades taken by our users, ie getting confirmations from the exchange about Order Status and when users tried to modify the orders or cancel them, these orders went in Transit state. We continued to be in touch with the exchange through the day, however the exchange confirmed that there are technical issued on MCX and it will take some time for same to be resolved fully.

As a result, to ensure that we do not risk more customers to trade, we halted fresh orders from being sent to exchange and allowed on existing orders to be square off. However as the main trading system of MCX continued to be down for us, we were limited to squaring off directly on MCX via broker access on Exchange. As exchange was unable to send us updates, the status of the square-off orders did not reflect on user’s positions and orders immediately. This will be updated after markets close today.

Post Update: (at 16 Oct, 10:30 PM)
MCX Exchange teams has informed us that they are making changes and deploying same tonight. We will test it along with them before deploying any changes to our systems and opening for fresh trades in commodities. We will keep our users posted about same.

Post Update: (at 17 Oct, 00:30AM)
MCX has deployed changes at their end and confirmed that they have pushed same to its trading systems. We will test these changes at our end when markets open at 9:00 AM on 17 Oct and accordingly decide on opening fresh positions for commodities on MCX.

Post Update: (at 17 Oct, 09:45 AM)
We have opened MCX commodity trades for fresh trades and positions.

Post Update: (at 17 Oct, 10:47 PM)
MCX was down once again across for trades on Crude Oil and Natural Gas. This issue / downtime was reported across all trading platforms from 10:00 PM to 10:45 PM.

Open Positions / Square-off:
Users can now trade in fresh or square-off existing positions. For positions that have been opened overnight and could not be executed, we are closing them with MCX. All pending requests on MCX trades are being connected by our Customer Service teams.

Why MCX worked for other trading platforms v/s Dhan
Exchanges like MCX work on multiple protocols, one of them is FIX (Financial Information eXchange) which is a globally accepted protocol that is used by Stock Exchanges to transmit information via trading platforms. MCX supports FIX which we use at Dhan. We participated in all mock trading and ensured our trading systems worked perfectly in pre-production, however the exchange systems that connected via FIX did not transmit trade informations seamlessly when they were moved in production on new Commodity Trading platform. Most of the brokers in India including some of the largest ones have outsourced or third party Order and Risk Management systems, while we at Dhan have in-house capabilities for same. Different brokers connect via different exchange protocols while we connect via FIX.

Please note, Dhan is #3 largest stock trading platform on MCX and it is absolutely important for us to ensure trading systems are completely tested so that we are able to provide a seamless trading experience to our users. Our teams have been in touch with exchange through the day on 16 Oct and we still continue to work with the teams to resolve the technical issue on the exchange at the earliest. We do understand that is it very frustrating for our users, however it was absolutely essential for us to not risk more users / trades had stop fresh orders.

Thank you
Pravin

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So this means we wont be able to place orders at the market open? Please clarify when exactly we will be able to place trades? How we will know that orders have started?

6000 has been debited from my account today thought the entire margin was released yest. I was not able to close my position as it kept saying market is closed but the order was executed. Why should I be bearing the loss when I wanted to close the position and I was not allowed to? What is the solution to this debit?

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1)God only Knows how order got executed BUY/SELL
2) Even when am trying to cancel it was not allowing.
3) Called DHAN Customer care no response.
4) Finally loss (Who will bare this)

I recently joined in DHAN maybe this was my 2nd trade. Am very unhappy with DHAN.
They should have blocked all MCX order when they there was change on trading platform. I don’t see any issue with other brokers.

Should have given complaint to court.

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Hi @PravinJ

Please update about the situation today. Will we be able to trade today in MCX?

My fund shows a debt of around 30k. As per the dhan team my trade was exited in profit yesterday. Then why funds showing less.

Problem was not with the exchange, but with the DHAN MCX platform. If the problem was with MCX exchange then the other brokers should have faced the same issues.

Can you clarify when you are mentioning MCX exchange team - is it the outsourced development of dhan or MCX?

We are bearing the huge loss for the non tested product platform release and would like to proceed to consumer court for compensation,

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Agree with your comment @nimmy

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@Sudhakar_Maddula @nimmy We have in house technology teams at Dhan. I have updated the post above to mention how the systems work, and also why few platforms were working v/s Dhan.

mere paise wapas do mai profit mein tha aapke trading platform ki wajah se mai loss mein hu

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Very poor response from Dhan. Very bad experience.

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@PravinJ Thank you sir for the prompt Response.

We are least bother to know how system works. We only cares about execution with perfection.

You guys could have cancelled the orders. Why would you execute them and then square off as and when u wish?

When my order was executed I was in profit and I tried to exit the position right there and then but I was not allowed to, saying market was closed. Two things:

  1. why was the order executed instead of cancelling when the market closed sign was going to be put up??
  2. We were not allowed to square off our positions at our end resulting in losses with no fault of us. Why should we bear the losses??? This issue should be taken upto SEBI and traders whose positions were executed yesterday should be compensated with their losses.
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Please square of my position in crude Iam running loss of 1lakh because of the technical glitch from ur end…

My details

My mail chiva1980@gmail.com
Pan ALFPP1026P

Nobody is responding

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Somebody answer dammit…. No body responding

Who is reposnible for the loss

I am seeing some unauthorized trades in the contract note sent this morning with 29k loss… Please answer how this is happening…

Iam not able square off my positions…. Please respond​:pray::pray::pray:

kal 16 tarikh ko order place nahi huye nahi kuchh, pese sare block hogaye . lekin shamko pure pese availabale me dikha rahe the, lekin aj subah jab dhan khola to crude oil 17oct futures 7400put ki buy thi at the price of 217.40 . first of all tell me, 1)ki bina mere trade execution ke trade placed kaisa hua?
2)jabki kal 7400put 217.40 tak gaya hi nhi to order placed kese hua? 3) without my permission automatically trade execute kaise hua? matlb mere pese ka abhi loss me dikha rahe hai usaka kya? and automatic trade place hore insane…

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Will do definately @Navas

1 Like