Latest news with #ElectricityDerivativesContracts
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Business Standard
10 hours ago
- Business
- Business Standard
MCX hits new high, surges 27% in 1 month; what's behind the stock rally?
Shares of Multi Commodity Exchange of India (MCX) hit an all-time high of ₹8,068.95, gaining 4 per cent on the BSE in Friday's intra-day trade. The stock price of India's leading Commodity Derivatives Exchange has surpassed its previous high of ₹8,033.30 touched on June 10, 2025. Thus far in the month of June, it has rallied 22 per cent. In the past month, MCX has outperformed the market by surging 27 per cent, as compared to a 1.2 per cent rise in the BSE Sensex. In the past year, the market price of MCX zoomed 110 per cent, as against a 6 per cent gain in the benchmark index. What's driving MCX stock price? MCX's key growth drivers include new product launches, futures and options; continued volatility in key commodity prices (gold, crude oil, and natural gas) amid global uncertainties; and sustained growth momentum in retail participation in the options market, according to the analysts. On June 6, 2025, MCX received approval from the Securities and Exchange Board of India (Sebi) to launch Electricity Derivatives, marking a significant milestone in the evolution of India's Energy trading landscape. This development underscores the strong commitment and support of the Regulators - SEBI and Central Electricity Regulatory Commission (CERC) - in enabling a dynamic and sustainable power market, MCX said. Track LIVE Stock Market Updates Today The Electricity Derivatives Contracts to be introduced by MCX will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the power market. 'This landmark move positions MCX as a torchbearer of innovation in commodity trading, while reinforcing India's ambition towards sustainable energy and capital market development. It also marks a pivotal step toward deepening India's energy markets and aligns with the broader vision of 'Viksit Bharat',' MCX said in an exchange filing. ICICI Securities' view on MCX MCX, since the start of the financial year 2025-26 (FY26), has witnessed a surge in options/futures volumes. For the combined timeframe of April/May 2025, the options' notional average daily turnover value (ADTV) stood at ₹2.56 trillion (up 34 per cent versus FY25 notional ADTV). Options Premium ADTV stood at ₹4,130 crore (up 33 per cent versus FY25 premium ADTV). Futures ADTV stood at ₹40,700 crore (up 50.5 per cent versus FY25 futures ADTV). The majority increase in volumes was driven by a strong surge in gold volumes, where notional/premium/futures ADTV increased 218 per cent/283 per cent/161 per cent in the first two months of FY26 versus FY25. This strong surge in gold volumes stemmed primarily from the modification in gold options contracts to monthly expiry contracts (prior bi-monthly) effective November 11, 2024. Momentum seen in April/May 2025 continued in the first two weeks of June. Passage of key regulations such as the New Equity Derivatives Framework in November 2024, the New Risk monitoring Framework for Equity Derivatives in May and finalisation of expiry for equity derivatives in June, imply a stable outlook ahead for exchanges, the brokerage firm said. About MCX MCX, operational since 2003, is India's leading commodity derivatives exchange with a market share of about 98 per cent in terms of the value of commodity futures contracts traded in the financial year 2024-25. With pan-Indian presence, MCX serves as a dynamic platform for the Indian commodity market ecosystem, offering dual advantages of fair price discovery and efficient risk management. It offers trading in a diverse range of commodities, spanning multiple segments including bullion, energy, metals and agri commodities, as well as sectoral commodity indices.
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Business Standard
09-06-2025
- Business
- Business Standard
MCX rises 4% after Sebi approves to launch electricity futures; IEX up 4%
Multi Commodity Exchange of India (MCX) share price gained 3.6 per cent in trade on Monday, June 9, 2025, logging a day's high at ₹7,694 per share on BSE. Meanwhile, Indian Energy Exchange (IEX) share price also gained 4.3 per cent, logging an intraday high at ₹211.1 per cent. At 9:32 AM, MCX shares were trading 3.64 per cent higher at ₹7,689.45 per share on the BSE and IEX shares were up 3.61 per cent at ₹209.55 per share. In comparison, the BSE Sensex was up 0.30 per cent at 82,438.57. In the past one year, MCX shares have given multi-bagger returns of 103 per cent and IEX shares have gained 22 per cent as compared to Sensex's rise of around 7 per cent. Sebi approves MCX's Electricity Derivatives Contracts The rally in both stocks came after Securities and Exchange Board of India (Sebi) granted approval to MCX for the launch of Electricity Derivatives Contracts. "The Multi Commodity Exchange of India Ltd. (MCX), India's leading Commodity Derivatives Exchange, has received approval from the Securities and Exchange Board of India (Sebi) to launch Electricity Derivatives, marking a significant milestone in the evolution of India's Energy trading landscape," the company's filing read. The Electricity Derivatives Contracts to be introduced by MCX will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the power market. What does MCX launching Electricity Derivatives Contracts mean for IEX? Until now, IEX has dominated India's short-term electricity market, primarily handling physical power trading. MCX's entry into electricity derivatives introduces a new financial market for electricity, allowing participants to trade futures contracts based on electricity prices. However, IEX focuses on physical delivery of electricity (for utilities, discoms, industries). While, MCX will offer derivatives that are financial instruments (suited for price risk management, not delivery). What are Electricity Derivatives Contracts? Electricity derivatives contracts are financial instruments that allow market participants to hedge, speculate, or manage price risk associated with electricity. They are not settled by physical delivery of electricity but by cash settlement, based on the spot market price of electricity such as that traded on power exchanges like IEX in India. About MCX MCX, operational since 2003, is India's leading commodity derivatives exchange with a market share of about 98 per cent in terms of the value of commodity futures contracts traded in the financial year 2024-25. It offers trading in a diverse range of commodities, spanning multiple segments including bullion, energy, metals and agri commodities, as well as sectoral commodity indices. About IEX IEX is an Indian power exchange, that provides a nationwide automated trading platform for the physical delivery of electricity, renewable energy, and certificates.
Business Standard
07-06-2025
- Business
- Business Standard
MCX receives SEBI approval to launch electricity derivatives
The Multi Commodity Exchange of India (MCX) has received approval from the Securities and Exchange Board of India (SEBI) to launch Electricity Derivatives, marking a significant milestone in the evolution of India's Energy trading landscape. This development underscores the strong commitment and support of the Regulators - SEBI and Central Electricity Regulatory Commission (CERC) - in enabling a dynamic and sustainable power market. The Electricity Derivatives Contracts to be introduced by MCX will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the power market. This landmark move positions MCX as a torchbearer of innovation in commodity trading, while reinforcing India's ambition towards sustainable energy and capital market development. It also marks a pivotal step toward deepening India's energy markets and aligns with the broader vision of 'Viksit Bharat'.
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Business Standard
06-06-2025
- Business
- Business Standard
VC funds get relief; MCX gets approval for electricity derivatives
The Securities and Exchange Board of India (Sebi) has modified its ex-parte interim order in the IndusInd Bank matter. In theorder, Sebi had stated that KPMG was appointed for an external validation of the discrepancy figures through a 'Board note' dated January 29, 2024. In a corrigendum issued on Friday, the market regulator replaced the term 'Board note' to 'Engagement Note' signed by the CFO and the then MD & CEO, and the deputy CEO. The market regulator had barred five officials from the bank in the alleged insider trading matter. liquidation period for VC funds extended The Sebi on Friday extended the liquidation period for venture capital (VC) funds migrating to the Alternative Investment Funds (AIFs) regulations by one year. The earlier deadline of July 19, 2025 has been extended to July 19, 2026. Sebi had earlier specified that VCFs which have schemes whose liquidation period has expired and are not wound up, and who migrate to AIF regulations will be granted additional period. Sebi has provided the additional period after representations from the industry. The last date of July 19 for legacy VCFs to migrate to AIF norms remains unchanged. Sebi has given approval to Multi-commodity Exchange (MCX) of India to launch electricity derivatives. The Electricity Derivatives Contracts will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the market. 'These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms,' said Praveena Rai, MD & CEO, MCX. BS REPORTER
Economic Times
06-06-2025
- Business
- Economic Times
MCX gets Sebi nod to launch electricity derivatives
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's largest commodity exchange The Multi Commodity Exchange of India MCX ) on Friday received a Securities and Exchange Board of India ( Sebi ) nod to launch electricity derivatives , a media release said, calling it a significant milestone in the evolution of India's energy trading landscape."This development underscores the strong commitment and support of the Regulators - SEBI and Central Electricity Regulatory Commission (CERC) - in enabling a dynamic and sustainable power market," the exchange filing Electricity Derivatives Contracts to be introduced by MCX will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the power market, the filing said."This landmark move positions MCX as a torchbearer of innovation in commodity trading, while reinforcing India's ambition towards sustainable energy and capital market development. It also marks a pivotal step toward deepening India's energy markets and aligns with the broader vision of ' Viksit Bharat '," it on the development, Praveena Rai, MD & CEO at MCX said that the introduction of electricity derivatives marks a pivotal development in India's commodities ecosystem. She said that these contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based launch of electricity derivatives comes in the wake of the country's growing focus on renewable energy and open access power electricity derivatives are expected to serve as a vital bridge between the physical and financial MCX currently offers contracts related to base metals -- zinc, aluminium, copper and lead, bullion (gold and silver), energy (oil and natural gas) and mentha oil.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
