MCX Set to Launch Electricity Futures on July 10: 5 Things You Should Know

The Multi Commodity Exchange of India (MCX) is poised to launch electricity futures trading on Thursday, July 10, 2025, following the green light from the Securities and Exchange Board of India (SEBI) in June. This strategic move is aimed at empowering market participants with an efficient tool to manage risks arising from electricity price fluctuations and demand variability.

Electricity futures will be available for trading across all 12 calendar months, with contracts for the current and next three months open initially. The introduction of these standardised, SEBI-regulated contracts marks a significant step toward strengthening India's growing energy derivatives market.

With the Indian power sector undergoing rapid transformation, electricity futures are expected to offer a transparent, liquid, and reliable hedging instrument for a wide range of participants, including:

• Power generators
• Distribution companies (DISCOMs)
• Large industrial consumers
• Institutional and financial investors

5 Things to Know About MCX Electricity Futures

1. Contract Launch Timing

• Contracts commence trading on the first business day of the launch month.
• Each contract is listed three months ahead of its expiry, following MCX’s launch calendar.

2. Expiry & Last Trading Day

• The contract expires on the business day before the last calendar day of the expiry month.
• If that day is a holiday, the preceding business day applies.
• On expiry, trading halts at 12:00 PM, before the dissemination of the Unconstrained Market Clearing Price (UMCP) from the Indian Energy Exchange's (IEX) Day Ahead Market (DAM).

3. Contract Tenure

Each futures contract will have a trading duration of four months.

4. Trading Hours

Trading will be available Monday through Friday, from 9:00 AM to 11:30 PM/11:55 PM, in line with existing MCX schedules.

5. Contract Specifications

• Lot size: 50 Megawatt-hours (MWh)
• Maximum order size: 50 times the trading unit (i.e., 2,500 MWh)
• Tick size: ₹1 per MWh

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Conclusion

By launching electricity futures, MCX aims to catalyse the development of a robust energy trading ecosystem in India—offering stakeholders the tools to better navigate volatility and foster long-term price discovery in the evolving power market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.