DARE - Because Entrepreneurs Do

Coming from an electrical engineering background, to creating a giant in electronic commodity trading, Jignesh Shah has created a revolutionary disruption in the financial markets, marrying technology and financial markets.

With a clear mandate in mind from school days to do electrical engineering, MS from the US, work there and start a business thereafter, Jignesh Shah has definitely achieved what he had always dreamt of. His brainchild is a global giant today, competing with the best and the biggest in the world.

Jignesh Shah Multi Commodity Exchange of India Ltd.

It all began as a mere co-incidence. Post completing his engineering, Shah decided to join BSE (Bomabay Stock Exchange) despite no knowledge on the subject and forego his dream of going to the US for his masters. As a regular practice, among others he was sent abroad by BSE in 1992 for training in international stock markets. There he happened to meet Dewang Neralla. Co-incidentally, both came to realise that use of technology in finance was the way forward and soon started their company Financial Technologies (FTIL) in 1995, with 3 other people.

While at it, they came to realise that an ideal business model is one where your gain is linked to the value transacted and not in the sold product. And this knowledge soon led to an exhilarating journey.

In 2003, when the government of India decided to create infrastructure for commodity exchanges on a national level, FTIL was the only technology company that applied. “We set up MCX (Multi-Commodity Exchange), with the aim of making it the best exchange over time placing ourselves in the global context right at the outset,” tells Shah.

Shah believes that efficient, transparent and liquid financial markets are by far the most powerful equalizers, change agents and disruptive platforms – to democratize opportunities for prosperity by driving inclusive and equitable growth in India and globally. Financial Technologies (India) Limited (FTIL), through its Exchange and Ecosystem Ventures, is acting as a catalyst in accelerating growth in economies where there are significant opportunities to unlock value. FTIL launched MCX with a vision to enable the 70 per cent of India’s rural masses to participate in the economic growth through an exchange.

Overtime, MCX has developed different contract denominations to accommodate the needs of varied market participants. The Exchange offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, and a number of agri-commodities on its platform. The futures contracts of MCX have demonstrably brought significant benefits to several sectors, not just for metals and energy but also for some smaller agricultural commodities.

With an aim to seamlessly integrate with the global commodities ecosystem, MCX has forged strategic alliances with leading international exchanges. The Exchange has also tied-up with various trade bodies, corporates, educational institutions and R&D centres across the country. These alliances will enable the Exchange in improving trade practices and facilitating overall improvement of commodity futures market.

Leveraging India’s best position on all fronts- domestic commodity base, technological skills, time zone advantage and trading instinct, Shah is on his way to enable India regain its important position in the world of commodities.