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MCX gains on partnering IEX for electricity derivatives

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Capital Market
Last Updated : Oct 30 2020 | 10:50 AM IST

Multi Commodity Exchange of India (MCX) added 1.31% to Rs 1696.50 after the company signed licensing agreement with Indian Energy Exchange (IEX) for launching electricity derivatives in India.

In a BSE filing made after market hours on Thursday, MCX said that the company and IEX had entered into a licensing agreement to launch Electricity derivatives linked to IEX spot electricity prices on MCX trading platform, subject to necessary approvals from the government of India and the concerned regulators.

"This shall lay the groundwork for a vibrant electricity derivatives market in the country, MCX said in a statement.

It further added that the launch of electricity derivatives shall provide an effective risk management avenue and help the value chain participants to hedge price risks and protect their revenue margins. With this India shall also join a select group of developed countries which offer electricity derivatives on an exchange platform.

MCX announced its Q2 September 2020 earnings on Wednesday, 28 October 2020. On a consolidated basis, MCX reported 18.4% decline in net profit to Rs 58.55 crore on a 12.3% rise in net sales to Rs 119.68 crore in Q2 FY20 over Q2 FY19.

EBITDA for the quarter ended 30 September 2020 decreased by 9% to Rs 83.52 crore from Rs 91.64 crore over the corresponding quarter ended 30 September 2019.

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The average daily turnover of commodity futures contracts traded on the exchange increased by 10% to Rs 38,144 crore in Q2 FY 2021 from Rs 34,526 crore in the corresponding quarter of Q2 FY19-20.

MCX is engaged in facilitating trading, and clearing and settlement of commodity derivatives. It operates as a commodity futures exchange.

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First Published: Oct 30 2020 | 9:58 AM IST

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