Multi Commodity Exchange of India (MCX), the country’s largest commodity futures exchange, has launched futures trading in the crude oil mini contracts. The exchange has launched it to cater to the needs of the physical market participants, for the benefit of small hedgers and traders.
The Forward Markets Commission (FMC), the commodity markets regulator, has permitted MCX to offer trading in this contract until end-June. 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.
The small and medium enterprises (SMEs) will be able to size their positions better and control their price risks efficiently. The exchange is already offering mini contracts in gold, silver and some base metals.