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.”

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.”

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..