New Launch8 Jul 2025, 01:48 pm
MCX Launches Electricity Futures for Price Risk Management
AI Summary
The Multi Commodity Exchange of India Ltd. (MCX) has announced the launch of the Electricity Futures Contract, effective from July 10, 2025. This launch is a significant milestone in the development of the country’s energy derivatives market, aiming to meet the growing demand for structured electricity price risk management instruments. The contract will help power generators, distribution companies, large industrial consumers, and financial participants with a transparent, liquid, and reliable hedging mechanism.
Key Highlights
- MCX receives SEBI's approval for launch of electricity derivatives in June 2025
- Electricity Futures Contract launched for all 12 calendar months of the year
- Trading initially open for the current and next three months
- Contract will be cash settled based on the Volume Weighted Average of the Unconstrained Market Clearing Price (UMCP) of the Day Ahead Market (DAM) at the Indian Energy Exchange (IEX) for all calendar days in the expiry month
- MCX commitment to building innovative and forward-looking products that address real market needs