India's leading commodity futures exchange, MCX (Multi Commodity Exchange of India Ltd.) has started futures trading in electricity in the country. FMC has already approved trading in electricity and MCX has started the weekly and monthly electricity contracts with immediate effect. Future trading in electricity is already offered by UK, Australia, US, France Sweden, Norway, Finland, Denmark and Germany's stock exchanges.

The Managing Director and CEO of MCX, Mr. Joseph Massey said, "This is another significant milestone and a moment of pride for the Indian Commodity Markets. India has joined the select group of developed countries which offers electricity futures on an exchange platform."

Mr. Massey told that the launch of trading in electricity would help to smooth price fluctuations besides giving a platform to participants to know future prices. Total annual market for electricity generation was Rs 2,00,000 crores in financial year 2007-08 which is expected to increase in next financial year.

The commodity futures exchange would trade electricity from Monday to Saturday. The delivery would be based on average of daily system prices of day-ahead market of Indian Energy Exchange (IEX).