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Business News/ Companies / News/  FTIL says new MCX tech pact to hit income by Rs8.82 crore
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FTIL says new MCX tech pact to hit income by Rs8.82 crore

FTIL's new agreement with MCX provides for software support and managed services until the year 2022

The announcement came just two days after the respective boards of directors of FTIL and MCX agreed to revise the technology agreement. Photo: Abhijit Bhatlekar/MintPremium
The announcement came just two days after the respective boards of directors of FTIL and MCX agreed to revise the technology agreement. Photo: Abhijit Bhatlekar/Mint

Mumbai: Financial Technologies (India) Ltd (FTIL) informed the stock exchanges on Monday that its revised technology agreement with Multi Commodity Exchange of India Ltd (MCX) will affect its income by 8.82 crore.

“Due to this supplementary agreement, and based on the current volume of MCX and assuming MCX daily volume remains same, the negative impact on the total income of the company would be around 8.82 crore for the period 2014-15," FTIL said in a statement.

The statement further added that the new agreement with MCX provides for software support and managed services on mutually agreed terms and conditions until the year 2022 and further renewal as may be mutually agreed between FTIL and MCX.

Fixed charges for software support and managed services have been lowered from 2 crore to 1.5 crore per month. Variable charges, too, have been lowered from 12.5% to 10.3% of the gross transaction charges received by MCX on a monthly basis, MCX said in a filing to BSE on Monday.

The announcement came just two days after the respective boards of directors of FTIL and MCX agreed to revise the technology agreement.

On 27 September, FTIL had said it concluded a 10-year long-term technology contract with MCX.

The conclusion of the technology agreement is significant for MCX as the commodities market regulator had insisted on such a review before allowing the exchange to launch fresh contracts.

At 9.30am, FTIL rose 7.3% to 233.30, while MCX rose 1.2% to 796.05. The benchmark stock index S&P BSE Sensex was trading at 26,623.01, down 0.01% from its previous close.

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Published: 29 Sep 2014, 10:48 AM IST
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