The Multi Commodity Exchange of India (MCX), the country’s leading commodity derivatives exchange, has announced modifications to the contract specifications of Nickel futures, including changes to the trading unit, expiry date, and delivery arrangements, in a bid to enhance market efficiency.
The trading unit has been reduced to 250 kgs from 1,500 kgs, effective from the September 2025 expiry contract onwards. The last trading day has also been shifted from the last calendar day of the expiry month to the third Wednesday of the month, or the preceding working day in case of a holiday.
Additionally, MCX said there will no longer be designated additional delivery centers at Chennai, NCR, and Kolkata. However, in line with SEBI’s circular, exchanges may accredit warehouses within a 100 km radius of the existing delivery center at Thane, Maharashtra.
The revised specifications will include a trading unit of 250 kgs, a minimum tick size of ₹0.10 per kg, daily price limits of 4%, and margins set at a minimum of 10% or SPAN, whichever is higher.
Delivery period margins will be calculated as the higher of 3% plus a 5-day 99% VaR of spot price volatility or 25%. Delivery will be compulsory with a tolerance limit of ±10%, and only LME-approved brands with a minimum purity of 99.80% will be accepted.
MCX stated in its August 18 exchange filing that the modified contract specifications and trading parameters will be binding on all members of the Exchange and their constituents.
MCX aims to boost liquidity and transparency in Nickel futures
Commenting on the development, Praveena Rai, Managing Director and Chief Executive Officer of MCX, said, “These modifications are part of MCX’s ongoing efforts to make nickel futures contracts more efficient, transparent, and aligned with evolving market needs.
“By reducing the trading unit, revising expiry schedules, and streamlining delivery processes, we are providing market participants with greater flexibility, improved liquidity, and a product structure that matches global benchmarks,” Praveena Rai further added.
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