MCX to launch coal, electricity futures in 2008

By Sourav Mishra and Swati Pandey

MUMBAI (Reuters) - The Multi Commodity Exchange of India (MCX) will launch coal and electricity futures contracts this year, Joseph Massey, deputy managing director, told Reuters in an interview on Friday.

"We are in the final leg of launching the coal (futures) contract," Massey said. "We should be able to launch it in the early part of 2008... before first half of 2008." MCX has received regulatory approval for the same.

MCX, India's top commodity exchange by trade turnover, has also received government approval for electricity futures, which it plans to launch this year, after spot electricity contracts on the Indian Energy Exchange (IEX) become functional, he said.

Both IEX and MCX are promoted by Financial Technologies (India) Ltd. IEX is likely to go live by the third week of February, R.K. Mediratta told Reuters on Wednesday.

"With these two products we will complete our energy basket.. it will make our energy basket more composite," Massey said.

MCX leads energy futures trading in India in terms of trade turnover, data from regulator Forward Markets Commission showed.

The exchange, which is awaiting regulatory approval for carbon credit and sulphur futures, will increase focus on energy and also introduce environment products this year, Massey said.

He said MCX already has a partnership with Chicago Climate Exchange, which is run by Britain's Climate Exchange Plc, and trades in carbon derivatives.