MCX Launches Electricity Futures Contracts for Aug, Sept, Oct; Trading Starts July 10

The Multi Commodity Exchange of India Ltd (MCX) has announced the launch of monthly base load electricity futures contracts for August, September, and October 2025. Trading for these contracts will begin on July 10, 2025. With this, MCX introduces structured price risk management tools for India’s rapidly evolving power sector.

Electricity Futures Contracts Begin July 10 

The electricity futures contracts will be available for delivery in Aug, Sept, and Oct 2025, with each contract spanning 50 MWh trading units. The contracts aim to provide a transparent, cash-settled mechanism based on price benchmarks from the Indian Energy Exchange (IEX). Aug contract expires on Aug 29, Sept on Sept 29, and Oct on Oct 30, 2025. These contracts offer a four-month trading cycle with continuous monthly availability.

Key Specifications and Trading Parameters

Trading will occur from Monday to Friday between 9:00 a.m. and 11:30 p.m., or up to 11:55 p.m. during US daylight saving periods. Price will be quoted in ₹ per MWh, excluding taxes. Tick size is ₹1 per MWh, and the maximum order size is capped at 2,500 MWh. Daily price limits will be governed by SEBI rules with a 6% initial slab, a 3% enhanced slab, and an aggregate cap of 9%.

Risk Management and Margins

A minimum initial margin of 10% or a SPAN-based margin whichever is higher will apply. Special or additional margins may be introduced in volatile market scenarios. The contracts will be marked to market daily based on DSP (Daily Settlement Price), with the final settlement done in cash using a volume-weighted average of UMCPs from IEX’s Day Ahead Market (DAM) during the expiry month.

Read More: NSE Set to Introduce Electricity Futures Contracts from July 14!

Eligibility and Open Position Limits

For individual clients, the maximum allowable open position is 3 lakh MWh or 5% of the market-wide open interest whichever is higher. For members trading on behalf of clients, the cap is 30 lakh MWh or 20% of the total market-wide open position. These guidelines ensure controlled exposure and market stability while expanding the scope of participation.

Multi Commodity Exchange of India Share Price Performance

On July 4, 2025, Multi Commodity Exchange of India share price opened at ₹9,030.00 on NSE, above the previous close of ₹9,002.50. During the day, it surged to ₹9,030.00 and dipped to ₹8,821.00. The stock is trading at ₹8,865.00 as of 1:02 PM. The stock registered a moderate decline of 1.53%.

Over the past week, it has declined by 0.88%, over the past month, it has moved up by 19.51%, and over the past 3 months, it has moved up by 76.35%.

Conclusion

MCX’s rollout of electricity futures contracts is a major step in integrating physical and financial power markets in India. With regulated contract design and SEBI’s backing, this launch is expected to support generators, DISCOMs, and large users in managing price risk amid India’s shifting energy landscape.

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