MCX commences futures trading in crude oil mini contracts

SMEs will be able to size their positions better and control their price risks efficiently, says Joint MD

Leading commodity bourse MCX today launched futures trading in the crude oil mini contracts for the benefit of small hedgers and traders.

MCX has got regulatory nod to offer futures trading in six crude oil mini contracts up to June this year.

The contract specification of crude oil mini is similar to the existing crude oil contract on MCX. The lot size of a crude oil mini contract is 10 barrels as against 100 barrel in the regulator futures contract, the exchange said.

"MCX' mini contract in crude oil has been launched to cater to the needs of the physical market participants, especially the SMEs," MCX Joint Managing Director P K Singhal said in a statement.

The small and medium enterprises (SMEs) will be able to size their positions better and control their price risks efficiently, he added.

The exchange is already offering mini contracts in gold, silver and some base metals.