MCX to launch Zinc Mini futures contracts on February 17 | Mint
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Business News/ News / India/  MCX to launch Zinc Mini futures contracts on February 17
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MCX to launch Zinc Mini futures contracts on February 17

MCX today has announced the launch of Zinc Mini Futures contracts with effect from Friday February 17, 2023.

Zinc Mini Futures contracts will be available for trading from February 17, 2023 to contract expiry months spanning from March, April, May and June 2023 and trading will be allowed only upto 5:00 p.m. on the date of expiry of the contract.Premium
Zinc Mini Futures contracts will be available for trading from February 17, 2023 to contract expiry months spanning from March, April, May and June 2023 and trading will be allowed only upto 5:00 p.m. on the date of expiry of the contract.

MCX today has announced the launch of Zinc Mini Futures contracts with effect from Friday February 17, 2023. Zinc Mini Futures contracts will be available for trading from February 17, 2023 to contract expiry months spanning from March, April, May and June 2023 and trading will be allowed only upto 5:00 p.m. on the date of expiry of the contract.

The trading week is set to run from Monday through Friday, with trading hours spanning from 9:00 a.m. to 11.30 p.m. / 11.55 p.m. (based on US daylight saving time period). The trading unit of Zinc Mini Future Contracts will be 1 MT and the quotation/base value has been fixed at 1 Kg. The maximum order size is 100 MT and the tick size (Minimum Price Movement) of Zinc Mini Future Contracts has been fixed at 5 paisa per kg.

Considering the daily price limits of Zinc Mini Futures Contracts, MCX said in a statement that “The Exchange has implemented a narrower slab of 4%. Whenever the narrower slab is breached, the relaxation will be allowed up to 6% without any cooling-off period in the trade. In case the daily price limit of 6% is also breached, then after a cooling-off period of 15 minutes, the daily price limit will be relaxed up to 9%. In case price movement in international markets is more than the maximum daily price limit (currently 9%), the same may be further relaxed in steps of 3%."

The extreme loss margin has been established at a minimum of 1%, and the initial margin of Zinc Mini Futures Contracts has been set at a minimum of 10% or based on SPAN, whichever is higher. The maximum allowable open position for a member as a whole for all clients is 70,000 MT or 20% of the market-wide open position, whichever is higher for all Zinc contracts combined together. The maximum allowable open position for individual clients is 7000 MT or 5% of the market-wide open position.

The delivery centre is ex-warehouse in Thane district in Maharashtra and additional delivery Centre (s) are Kolkata district in West Bengal, National Capital Region (NCR) and Chennai district in Tamil Nadu. The pay-in for delivery allocation will be on T+1 working days i.e. excluding Saturday, Sunday & Public Holiday.

The closing price-weighted average price of the last half-hour on the relevant tender day, excluding the expiry date, will be the rate at which delivery will be assigned. The delivery order rate or final settlement price on the expiration date should be the Due Date Rate (DDR) rather than the closing rates. The simple average of the latest polled spot prices from the past three trading days, namely E0 (expiry day), E-1, and E-2, will be used to determine the Final Settlement Price (FSP).

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Published: 14 Feb 2023, 10:56 PM IST
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