CARBON EMISSIONS REDUCTION TRADING AT MCX!!

Following is some handy information about the newly launched CARBON CREDIT FUTURES contract. The contents give the basic comparisons and the highlights of the contracts available on MCX and the corresponding Reference Market.

1. REFERENCE MARKET
European Climate Exchange – ICE ECX

2. MARKET TIMINGS - ECX
12:30 p.m. IST – 22:30 p.m. IST

3. PRICE QUOTE IN INTERNATIONAL MARKET
Euro per Ton

4. LIVE / HISTORICAL PRICES AVAILABLE AT
a. Reuters –
b. Bloomberg –

5. NEWS OR MARKET INFORMATION AVAILABLE AT
a. DowJones
b. Bloomberg
c. Point Carbon

6. CONTRACTS AVAILABLE ON MCX
a. 15th Dec 08
b. 15th Dec 09

7. CONTRACT SIZE
200 tons
CONTRACT VALUE: 200 * (23 Euros * 57 INR) = Rs. 262,200
(Assumption: current Price per ton is 23 Euros and current exchange rate is
INR 57 per Euro)

8. PRICE QUOTE
Rs. per Ton

9. TICK SIZE
50 paise per ton

10. PROFIT / LOSS PER TICK FOR A CONTRACT
Rs 100

11. DAILY PRICE LIMIT
5%

12. MARGIN
6% (Approx. Rs. 15897 per Ton)

13. AVERAGE DAILY VOLATILITY
3.5% (for the year 2007) i.e. Re. 1 on an average

14. DELIVERY
Both Option

15. DUE DATE RATE
DDR would be the settlement price of ECX CFI near month contract on the last day (expiry date) of the MCX CFI contract. The ECX CFI settlement price will be converted at the Rupee – Euro rates as notified by RBI on that particular day.

16. ECX Price movement
EXC (Euro) MCX (Rupees)
0.01 0.57
0.10 5.7
0.50 28.5
0.75 42.75
1.00 57

Assuming EURO – INR exchange rate is Rs. 57 per 1 Euro.

17. Comparison Table:
Exchange Timings Contract Size Tick Size
MCX 10:00 P.M. TO 11:30 P.M.(IST) 200 tons 0.50 Rupees
ECX (-ICE) 12:30 P.M. TO 10:30 P.M. (IST) 1000 tons 1 Cent

18. Important Historical Figures at the Reference Market

Price Movement EXC (Euro) MCX (Rupees)
Average Price movement in a day (For 2007) 0.39 Euro 38
Maximum Price movement in a day (For 2007) 4.00 Euros 228
All Time High (2007) (per ton) 26.00 1482
All Time Low (2007) (per ton) 11.80 672.60