MCX, the country's largest commodity exchange, has settled the arbitration proceeding against UK-based software vendor PESB, which was engaged in developing spot platform.

PESB has agreed to pay the amount equivalent to outstanding invoices, said MCX in a statement on Tuesday.

The dispute between MCX and PESB Ltd, a UK-based vendor engaged for developing spot platform, pending before Singapore International Arbitration Centre since January has been amicably settled and closed on the payment of amount equivalent to outstanding invoices, it said.

The closure of the matter was confirmed by Singapore International Arbitration Centre vide its email on Tuesday, said the exchange.

MCX had paid about ₹19 crore to PESB since 2018 for the developing software for launching a trading platform for a new spot exchange. The software is yet to be delivered completely.

SEBI had allowed exchanges to launch spot trading platforms in 2018, following which MCX moved to acquire software.

Meanwhile, in September, MCX awarded Tata Consultancy Services the contract to build a new technology platform for trading as well as post-trade functions.

The existing contract of the exchange with 63 moons (formerly Financial Technologies) ends in September 2022.

Last October, MCX sought applications from software companies to provide new trading and clearing software.

While the system being developed will initially be used for commodity derivatives trading, it needs to be extensible to commodity spot, equity and equity-related derivatives, debt, currency derivatives, and interest rate derivatives to achieve MCX vision of becoming a Universal Exchange, the exchange had said.

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