MCX completes first physical delivery of Zinc from futures platform
MUMBAI (Scrap Register): Multi Commodity Exchange of India (MCX) has completed the first physical delivery of its another base metal futures, ie Zinc April 2019 contract. The delivery process was conducted seamlessly and all deliveries were completed in accordance with the terms and conditions of the contract, marking the conclusion of the first full settlement cycle.
Pay-in and pay-out of the contract concluded on May 2, 2019, for a quantity of 430 tonne. The contract was settled with no delivery defaults.
The deliveries were made by two entities viz. Indu Corporation Pvt Ltd through IIFL Wealth Management Ltd and Phoenix Industries Ltd through Motilal Oswal Financial Services Ltd.
The metal, which conforms to MCX’s quality parameters ie LME approved brand of Special High-Grade zinc with minimum purity of 99.995% purity zinc ingot, was delivered at the MCX approved warehouse at Bhiwandi, district Thane. The delivery was effected through MCXCCL’s Electronic Commodity Receipts Information System, ComRIS.
MCX, on January 3, 2019 launched the first domestically benchmarked, compulsory deliverable zinc 5 metric tonne futures contract in the country. The final settlement price for this deliverable contract was derived using polled spot prices from actual physical market participants, who play a predominant role in price discovery process.