MCX Launches Electricity Futures to Broaden Commodities Portfolio

09 Jul 2025 CW Team

With electricity demand rising and price volatility influenced by seasonal trends, fuel costs, and market fluctuations, the new contract is designed to offer a robust risk management tool to power producers, distribution companies, large industrial consumers, and financial participants. It also adds a new asset class for investors looking to diversify portfolios with energy-linked instruments.

The Electricity Futures Contract will be available for all 12 calendar months, with trading initially open for the current and next three months. Key contract details include:

Trading unit: 50 MWh
Quote: Indian Rupees per MWh (excluding taxes/levies)
Tick size: Rs 1 per MWh
Settlement: Cash-settled based on the Volume Weighted Average of the Unconstrained Market Clearing Price (UMCP) from the Indian Energy Exchange (IEX) for all days in the expiry month

The contract will adhere to SEBI’s Daily Price Limits, starting at 6 per cent and extendable to 9 per cent in a single day. Initial margins will be 10 per cent or VaR-based, whichever is higher. Client-level position limits are capped at 3 lakh MWh or 5 per cent of market-wide open interest, whichever is greater.

Praveena Rai, MD & CEO, MCX, stated, “Electricity pricing is influenced by a wide range of demand and supply variables, from weather and seasonal shifts to peak usage patterns. The launch of Electricity Futures is aligned with our goal of offering innovative market instruments that support transparent, efficient, and forward-looking price discovery. This product will help deepen India’s energy markets and move us closer to the vision of a market-driven, sustainable power pricing system.”

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

Multi Commodity Exchange of India (MCX), India’s leading commodity derivatives exchange and the world’s largest commodity options exchange (FIA, 2024), has announced the launch of its Electricity Futures Contract, effective Thursday, 10 July 2025. The launch follows SEBI’s approval granted in June 2025 and marks a key milestone in India’s energy derivatives landscape.With electricity demand rising and price volatility influenced by seasonal trends, fuel costs, and market fluctuations, the new contract is designed to offer a robust risk management tool to power producers, distribution companies, large industrial consumers, and financial participants. It also adds a new asset class for investors looking to diversify portfolios with energy-linked instruments.The Electricity Futures Contract will be available for all 12 calendar months, with trading initially open for the current and next three months. Key contract details include:Trading unit: 50 MWhQuote: Indian Rupees per MWh (excluding taxes/levies)Tick size: Rs 1 per MWhSettlement: Cash-settled based on the Volume Weighted Average of the Unconstrained Market Clearing Price (UMCP) from the Indian Energy Exchange (IEX) for all days in the expiry monthThe contract will adhere to SEBI’s Daily Price Limits, starting at 6 per cent and extendable to 9 per cent in a single day. Initial margins will be 10 per cent or VaR-based, whichever is higher. Client-level position limits are capped at 3 lakh MWh or 5 per cent of market-wide open interest, whichever is greater.Praveena Rai, MD & CEO, MCX, stated, “Electricity pricing is influenced by a wide range of demand and supply variables, from weather and seasonal shifts to peak usage patterns. The launch of Electricity Futures is aligned with our goal of offering innovative market instruments that support transparent, efficient, and forward-looking price discovery. This product will help deepen India’s energy markets and move us closer to the vision of a market-driven, sustainable power pricing system.”

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..