Multi Commodity Exchange executed delivery of 10 tonnes (2 lots) of aluminium under the first compulsory delivery futures contract on Tuesday.
The delivery was given by Indu Corporation, through IIFL Wealth Management, while the buyer was Phoenix Industries via Motilal Oswal Financial Services.
The LME-approved 99.97 per cent purity ingot was delivered at the MCX approved warehouse at Bhiwandi, Thane district. The delivery was effected through MCX Clearing Corporation’s Electronic Commodity Receipts Information System, ComRIS.
On January 3, MCX launched the first domestically benchmarked, compulsory deliverable aluminium futures contract of 5 tonnes to be settled on polled domestic spot prices from market participants.
MCX rupee-quoted contracts augur well for hedging currency risks and commodity price volatility driven by both international and domestic factors.
Mrugank Paranjape, Managing Director, MCX, said the seamless delivery through the exchange mechanism will help further integrate physical and derivatives markets, enabling the emergence of a stronger market-based facility for risk management and price discovery in the Indian metals market.
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The Hindu Business Line