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Commodity markets regulator FMC has allowed MCX to launch crude oil mini futures contracts for next year.
"Once the contracts are commenced, no terms of the contracts specification should be changed without prior approval of the Commission," Forward Markets Commission (FMC) said in its circular today.
The crude oil mini futures contract with a trading unit of 10 barrel will quote ex-Mumbai price.
An individual client can trade up to 4,80,000 barrels, while a member (brokerage firm) collectively for all clients can trade up to 24,00,000 barrels, as per the contract specification approved by the regulator.
FMC said that the exchange should ensure that there is no unhealthy speculative trading in the market. It should also send a monthly/quarterly report.
Currently, MCX is offering mini futures contracts in some of the base metals and precious metals.
