Multi Commodity Exchange of India Limited (MCX), India's leading commodity derivatives exchange, has announced the launch of Nickel futures contracts effective August 18, 2025. This strategic move aims to provide a robust mechanism for nickel-consuming industries to manage price and currency risks, addressing the challenges faced by sectors heavily reliant on nickel imports.

Contract Specifications

The newly introduced Nickel futures contract comes with the following key features:

• Trading unit: 250 kgs
• Delivery unit: 1500 kgs
• Tick size: ₹0.10 per kg
• Daily price limits: 4%
• Minimum margins: 10% or SPAN, whichever is higher
• Expiry: Trading will commence with September 2025 expiry contracts
• Delivery centre: Thane
• Last trading day: Third Wednesday of the expiry month (or preceding working day if it's a holiday)
• Delivery period: Last 3 working days of the contract month
• Accepted delivery: LME approved Primary Nickel cathodes with minimum purity of 99.80%

Addressing Industry Needs

The introduction of this INR-denominated contract is expected to significantly benefit various sectors, including:

1. Stainless steel manufacturing
2. Electroplating industry
3. Electric Vehicle (EV) battery production
4. Engineering sectors

These industries, which are currently exposed to price volatility and supply disruptions due to India's dependence on nickel imports, will now have a more effective tool to manage their price risks and enhance their competitiveness.

Market Impact and Opportunities

Ms. Praveena Rai, Managing Director and Chief Executive Officer of MCX, commented on the development, stating, "This listing is part of MCX's ongoing efforts to make base metals contracts more efficient, transparent, and aligned with evolving market needs. By introducing an optimal trading unit, expiry schedules, and delivery centre, we are providing market participants with improved liquidity, greater predictability of delivery location and a product structure that matches global benchmarks."

The Nickel futures contract is not only designed for physical market players but also offers opportunities for financial participants and investors. It can serve as an asset class for portfolio diversification and liquidity, further enhancing the depth of India's commodity markets.

MCX's Market Position

MCX, operational since 2003, has established itself as a dominant player in India's commodity derivatives market. With a market share of about 98% in terms of the value of commodity futures contracts traded in the financial year 2024-25, MCX also holds the distinction of being the largest Commodity Options Exchange globally, as per FIA 2024 data.

The exchange offers trading in a diverse range of commodities across multiple segments, including bullion, energy, metals, and agri commodities, as well as sectoral commodity indices. This latest addition of Nickel futures aligns with MCX's vision to make India a price setter for commodities consumed domestically, supporting the country's drive towards security and self-sufficiency in critical industrial metals.

As India continues to grow its manufacturing and technology sectors, the introduction of such financial instruments becomes increasingly crucial. The Nickel futures contract on MCX is poised to play a significant role in shaping the future of India's nickel trade and consumption, providing a much-needed hedging tool for industries and potentially attracting more participants to the commodity derivatives market.

Multi Commodity Exchange of India Limited (MCX) has reported outstanding financial results for the first quarter of fiscal year 2026, with consolidated income reaching a record high of ₹406 crore. This represents a robust 60% year-on-year growth, marking the highest ever revenue for the exchange.

Strong Financial Performance

The company's profit after tax (PAT) grew significantly to ₹203 crore, reflecting the strong financial health of MCX. The average daily turnover for the quarter stood at an impressive ₹3,10,000 crore (₹3.1 trillion), underlining the increased trading activity on the exchange.

Revenue Breakdown

A breakdown of the transaction revenue reveals:

The substantial contribution from options trading highlights the growing popularity of these derivative instruments among market participants.

New Product Launches and Innovations

MCX has been proactive in expanding its product offerings, launching several new contracts since April:

• 10-gram gold futures
• Silver options
• Electricity futures
• Cardamom contracts

These new products aim to broaden risk management opportunities for stakeholders across various industries.

Stock Split Approval

In a move to enhance stock liquidity and accessibility, the MCX Board has approved a 1:5 stock split, reducing the face value of shares from ₹10 to ₹2 per share. This decision is subject to necessary approvals.

Increased Retail Participation

The exchange reported a rise in retail participation, which increased to 52.37% compared to 51.79% in the previous quarter. This growth in retail interest aligns with MCX's efforts to broaden its investor base.

Focus on Technology and Risk Management

Praveena Rai, Managing Director and CEO of MCX, emphasized the company's continued focus on strengthening its technology and risk framework. This commitment is crucial to support the exchange's growth trajectory and maintain operational excellence.

Outlook

With a strong start to the financial year, MCX is well-positioned for continued growth. The exchange plans to introduce more products, including index options, and is working on extending long-dated contracts to cater to diverse market needs.

The launch of electricity futures has been particularly noteworthy, with early indications showing positive traction. The contract has already built up a healthy open interest of about 700 lots, with approximately 50% participation from commercial and corporate entities.

As MCX continues to innovate and expand its product range, it remains committed to providing efficient risk management tools for India's commodity markets, serving a crucial role in the country's financial ecosystem.