ATF futures to hit market from Monday

New Delhi, July 6 : Leading commodity exchange MCX will start trading in Aviation Turbine Fuel (ATF) from Monday for the first time in the country, helping hedgers like airlines and refiners at a time when crude prices are at a record high of $146 a barrel.

ATF is a special type of petroleum product. Futures trading in six contracts — July, August, September, October, November and December — will be offered from July 7, an MCX circular said. Individual investors can buy or sell a maximum of six lakh barrels in one contract, while for clients the upper limit in open position is 30 lakh barrels, or 15 per cent of the volume, whichever is higher.

The contracts would expire on 26th of the respective month. MCX has fixed minimum trading limit at 100 barrels while the price would be displayed in terms of rupee per barrel. The daily price limit, which is set by market regulator to prevent manipulation, is four per cent and after another two per cent volatility in prices, trading would be stopped.

Buyers and sellers can trade by paying five per cent of their position as margin money. However, there may be additional margin fixed in case of high volatility in prices.

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