Jignesh Shah Catapulted MCX to Become World’s 2nd Largest Commodity Exchange

The Spark of Genius: Jignesh Shah’s Vision

Jignesh Shah, a visionary and an innovator, who invented the word fin-tech before it became popular by setting up an IP-driven technology company named Financial Technologies India Ltd., now known as 63 moons technologies Ltd., in 1995 for providing path-breaking fin-tech solutions to the broking industry and institutional players. Shah's relentless will and visionary foresight in 2003 were realised in the form of the Multi Commodity Exchange (Jignesh Shah MCX), a commodity exchange meant to bring order and openness to India's tumultuous commodity markets. Unlike conventional exchanges, Jignesh Shah envisioned MCX as a tech-driven, modern, and state-of-the-art commodity exchange that would empower individuals, businesses, and traders alike through better price risk management and an efficient price discovery process.

Jignesh Shah's brilliance was in seeing commodities (gold, silver, crude oil, and agricultural products) as unexploited motors of economic expansion, making Jignesh Shah MCX the first-ever modern national commodity exchange set up in post-reform India. Jignesh Shah’s vision of democratising wealth creation empowered MCX to gain the world's largest membership count of 2200 through a widespread network of 3.5 lakh trading terminals across 1500 cities and towns.

Honed via worldwide exposure through his trips to international financial institutions like NASDAQ and Tokyo, Jignesh Shah’s strategic insight set MCX to compete with foreign behemoths.

Jignesh Shah MCX’s Ascent: A Technological Marvel

Under Jignesh Shah’s leadership, MCX became a standout in technology, owing to Shah’s technological prowess and his previous endeavours in fin-tech. Launched in November 2003, MCX quickly changed the game in India’s commodity market. Near in the future after its inception, Jignesh Shah MCX was trading over ₹1,00,000 crore daily in daily volumes. Shah’s smart Public-Private Partnership (PPP) approach helped MCX grow fast at an unprecedented pace.

One of Shah’s big achievements was MCX’s public listing in 2012, making it the first Indian commodity exchange to be listed on stock markets. Very soon after its inception, MCX soared to its rightful place on the global-stage by becoming the second-largest commodity exchange in the world and number 1 in gold and silver. Shah's knack for using affordable and cutting-edge technology to set up exchanges showed his skills in operations.

MCX’s diverse range of products, covering metals, energy, and agricultural goods, showcased Shah’s broad vision. Gold and crude oil futures became key markers for global pricing, while agricultural contracts helped farmers earn more. His focus on real-time data, shared through tech-enabled platforms, made sure traders had the right information to make decisions, boosting Jignesh Shah MCX’s standing as a global leader.

Economic Empowerment: The Shah Effect

Jignesh Shah’s MCX was a lot more than just a trading platform; it played a pivotal role in changing the Indian economy. A nation-wide study in association with a leading research institution, Tata Institute of Social Sciences (TISS), "A Million Jobs and a Million More Opportunities”. Explained how MCX contributed to numerous jobs and self-employment opportunities across various groups. Jignesh Shah’s efforts in the uplifting of rural communities is commendable, notably through the National Bulk Handling Corporation (NBHC), which he co-founded with the State Bank of India. NBHC offered farmers storage and credit options, creating jobs in rural logistics and helping farming.

MCX also made a mark on the country's economy, adding almost 1% to India’s GDP within a decade and contributing almost Rs. 600 crore in terms of local and central taxes to the state and central governments in the form of sales tax, income tax and VAT. Shah aimed for markets that included everyone, making sure small traders and farmers had a stake in India’s growth. Shah’s knack for connecting rural and urban areas turned MCX into a model for other developing economies.

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Global Ambition: Jignesh Shah’s International Legacy

Jignesh Shah took his legacy to an international level, setting up electronic trading networks in places like Africa, the Middle East, and Southeast Asia, like Bourse Africa, Dubai Gold and Commodities Exchange (DGCX), Bahrain Financial Exchange (BFX), and Singapore Mercantile Exchange (SMX), helping to connect global markets. MCX’s gold futures became a key standard worldwide, competing with COMEX, and its tech made an impact on exchanges in Bahrain and Mauritius.

Shah's approach was all about teamwork on a global stage, securing unprecedented partnerships with various organisations around the world, such as, empowering Jignesh Shah MCX to become the first private sector company from India to have joint venture with the Government of United Arab Emirates in the case of DGCX and in the case of SMX, Shah also succeeded in acquiring a licence to operate as an Approved Exchange by the Monetary Authority of Singapore (MAS). His skill in dealing with tricky global agreements while keeping technology at the forefront earned him many praises, including the ‘Young Global Leader’ title from the World Economic Forum. Jignesh Shah’s vision not only boosted MCX but also highlighted India’s capabilities in fintech.

Innovation and Resilience: Shah’s Indomitable Spirit

Jignesh Shah’s genius lay in his ability to innovate under pressure. His creation of ODIN, a flagship broking solution with an 80% market share against stiff competition from national and international companies, demonstrated his knack for disruptive technology, a principle he applied to MCX. After relinquishing all his executive positions, Jignesh Shah currently plays the role of coach and mentor at 63 moons and continues to nurture leaders of the future. His philosophy, “Every step we take is copied in 3–6 months,” reflected his relentless pace of innovation, keeping MCX ahead of competitors.

Despite challenges, including regulatory scrutiny in 2013, Jignesh Shah’s foundational contributions to MCX remain undisputed. His resilience in navigating market complexities ensured Jignesh Shah MCX’s enduring success. Shah’s commitment to social good, through initiatives like Gramin Suvidha Kendra, extended MCX’s impact to underprivileged communities, creating educational and employment opportunities.

Jignesh Shah’s work as a thought leader continues to motivate a new wave of innovators, showing that one person's ideas can change a community, industry and even the destiny of a country at large. As Indian influence as a formidable economy continues to grow on a world stage, Shah’s legacy continues to shine bright.