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Multi Commodity Exchange of India Ltd.’s Q1 FY22 saw further normalisation in bullion volumes, largely driven by 24%/13% sequential decline in gold/silver volumes.
This was partially offset by a 49% sequential increase in crude volumes on the reversal of the higher margin requirements imposed earlier.
Overall average daily turnover dipped 9.8% q-o-q, leading to 9.7% sequential decline in revenue.
The impact on volumes during the quarter was the result of some normalisation in bullion volumes and the third phase of the implementation of new margin rules (75% of peak margin requirement) from June 01. June volumes fell 10% month-on-month.
However, volume recovery in July (to date) gives us the confidence that the new margin rules would gradually be accommodated by the participants.
MCX management expects the incremental impact on volumes in the fourth phase (100% of peak margins) to be below 4%.
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