MCX revises nickel future specifications to enhance market efficiency

New Delhi, Aug 18 (PTI) Commodity bourse MCX on Monday announced modifications to the contract specifications of nickel futures contracts.

The modifications, effective from August 18, include changes to the trading unit, expiry date, and delivery arrangements.

"These modifications are part of MCX's ongoing efforts to make Nickel futures contracts more efficient, transparent, and aligned with evolving market needs," MCX Managing Director and Chief Executive Officer Praveena Rai said.

By reducing the trading unit, revising expiry schedules, and streamlining delivery processes, the exchange aims to provide market participants with greater flexibility, improved liquidity, and a product structure that matches global benchmarks, he added.

As per the modifications, the trading unit will be reduced from 1,500 kgs to 250 kgs, effective for the September 2025 expiry contract and onwards.

The last trading day of the contract will be shifted from the last calendar day of the expiry month to the third Wednesday of the expiry month, or the preceding working day in case of a holiday.

Additionally, there will no longer be designated additional delivery centres at Chennai, NCR, and Kolkata. However, as per Sebi's circular, exchanges may accredit warehouses within a 100-km radius of the existing delivery centre at Thane, Maharashtra.

The revised contract specifications for the exchange will include a trading unit of 250 kgs, a minimum tick size of Rs 0.10 per kg, daily price limits of 4 per cent, and margins set at a minimum of 10 per cent or SPAN, whichever is higher.

Delivery will be compulsory with a tolerance limit of 10 per cent on either side, and only LME-approved brands with a minimum purity of 99.80 per cent will be accepted.

According to MCX, the modified contract specifications and trading parameters will be binding on all members of the exchange and their constituents. PTI LUX LUX SHW