Commodity exchange MCX to roll out jet fuel futures in a month
20 Jun 2008
Mumbai: The Multi Commodity Exchange (MCX) is planning to roll out Aviation Turbine Fuel (ATF) or jet fuel futures contracts sometime early next month.
Presently, ATF is not available for futures trading in India. MCX says it has received official approval from the Forward Markets Commission (FMC) to initiate futures trading in jet fuel. MCX would be the second futures exchange for jet fuel in the world, after the Tokyo Commodity Exchange .
MCX managing director Joseph Massey has been quoted as confirming that MCX has received official permission from the regulator FMC to launch futures trading in ATF, though it has yet to decide on the date of the launch. The exchange has started seminars to educate members and participants prior to the launch.
Reports indicate that the contract specifications stipulate that a trading unit would be one kilo liter, and a delivery unit would be 10 kiloliters. Mumbai would be the delivery centre, and the contract would have both sellers and buyers options. The contract would resemble that of the Tokyo Commodity Exchange's kerosene contracts (JIS K2203 Grade 1).
