MCX To Launch Electricity Futures Contracts From Thursdaym

Multi Commodity Exchange of India Ltd. will roll out electricity futures contracts starting Thursday, the bourse said in a filing.

The contracts will follow SEBI’s daily price limit framework, with an initial cap of 6%, extendable up to 9%. Initial margins will be set at a minimum of 10% or based on volatility VaR, whichever is higher.

Client-level position limits are set at 300,000 MWh or 5% of market-wide open interest, whichever is higher. The contract size is 50 MWh, priced in ₹/MWh, with a tick size of ₹1.

The product aims to offer a structured risk management tool for power generators, discoms, and large consumers, following SEBI’s June approval.