MCX to relaunch ATF futures; seeks FMC nod

NEW DELHI: The leading commodity bourse MCX is planning to relaunch Aviation Turbine Fuel (ATF) futures with a few modification in the contract specification.

The exchange, which launched ATF futures in July, has approached the market regulator Forward Markets Commission (FMC) for its approval to the changes it sought in the contract, sources said.

It is a mandatory for the exchanges to seek FMC approval if they want any change in the running contract, they added.

The ATF futures has been remodelled taking into account the requirements of the industry and MCX has submitted the proposed changes to the regulator, the sources said.

It is likely that the FMC would approve the changes this month and the exchange could relaunch the ATF contract in October, they added.

The current contract is modelled on the lines of ATF contract on Tokyo Commodity Exchange.

Aviation Turbine Fuel (ATF) or jet fuel is a specialised type of petroleum-based fuel used to power aircraft. It is generally of a higher quality than fuels used in less critical applications such as heating or road transport.

The country is seeing a major spurt in air traffic, both domestic and international. As a result, there has been a steady rise in fuel demand and refiners need an assured supply to cater to the growing demand. Airlines are also looking at hedging on long-term contracts with refineries.