Electricity Futures
NSE not a rival, will grow electricity futures mkt together, says MCX's Rai
This story was originally published at 16:02 IST on 8 July 2025
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MUMBAI – With both Multi Commodity Exchange of India Ltd. and National Stock Exchange of India Ltd. set to launch electricity futures contracts from Thursday and Monday, respectively, Praveena Rai, managing director and chief executive officer of MCX, said the two exchanges are not going to be rivals. "I think we will both grow the market first and then we can compete," Rai said at a press conference here Tuesday.
MCX will soon announce a scheme to drive liquidity in the contract and the process to choose market makers. "We are very conscious that it is important for a new contract to drive liquidity," MCX management said. The margins for the contract will be in the range of 15-20%, they said.
With rising power demand in the country and volatile prices, people will have a medium to hedge their requirements on the exchanges with visibility on power prices, MCX management said.
"The electricity futures contract will help power generators, distribution companies, large industrial consumers, and financial participants with a transparent, liquid, and reliable hedging mechanism," the exchange said. The contract will be cash settled based on the volume-weighted average of the unconstrained market-clearing price of the day-ahead market at the Indian Energy Exchange for all calendar days in the expiry month.
The symbol of the electricity futures contract is 'ELECDMBL'. The trading unit will be 50 megawatt-hours, and the maximum order size will be 50 times the trading unit. The duration of the contracts will be four months. End
Reported by Ashutosh Pati and Abhijit Doshi
Edited by Saji George Titus
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