Multi Commodity Exchange of India Limited (NSE: MCX) Q4 2025 Earnings Call dated May. 09, 2025
Corporate Participants:
Praveena Rai — Chief Executive Officer and Managing Director
Rishi Nathany — CBO
Analysts:
Devesh Agarwal — Analyst
Amit Chandra — Analyst
Astha Jain — Analyst
Chintan Sheth — Analyst
Lavanya — Analyst
Harsh Shah — Analyst
Shalini Gupta — Analyst
Arpit — Analyst
Ashish Kumar — Analyst
Aravind R — Analyst
Aditya Bhatia — Analyst
Sanket — Analyst
Deepak Ajmera — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Multi-commodity Exchange of India Limited Q4 FY ’25 Earnings Conference Call. Thank you. Joining us on the call are Ms Pravina Ray, Managing Director and Chief Executive Officer; Mr Manoj Jain, Chief Operating Officer; and Mr Chandresh Shah, Chief Financial Officer; Mr Praveen, Chief Risk Officer; and Mr Rishi Nathani, Chief Business Officer from Multimedia Community Exchange of India Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms Pravina Ray, MD and CEO, MCX. Thank you and over to you, ma’am.
Praveena Rai — Chief Executive Officer and Managing Director
Good evening, everybody. Very happy to be here as part of our investor call for the results of FY ’24-’25. Very happy to announce that we’ve had a phenomenal year, closing the year at INR1,208 crores of consolidated income, which is 59% year-on-year growth. So it’s been a very good year-by way of income and by way of growth. We’ve also seen this when we look at Q4 of ’25 versus Q4 of ’24. Again, this indicates similarly 61% growth. It’s further reflected in the EBITDA. EBITDA for the year closed at INR761.5 crores at 63% and profit-after-tax is INR560 crores at a 46% margin.
So that’s really where we stand-in terms of our top-line and bottom-line numbers. Further to that this is really driven by a very healthy growth of our daily throughput with the ADT that is average daily throughput of both futures and options together nearly doubling at 101% touching 2.2 trillion INRs from 1 trillion INR. So that’s really more than a doubling. And on the back of this is healthy growth in futures, certainly healthy growth in notional ADT of options and also the premium ADT of options, which have also grown by about 85%. So those are really the drivers and we’ve seen these numbers grow across all our product lines. Not just from a derivative trading standpoint, we’ve also seen this health reflect in the kind of deliveries that we’ve seen we’ve really seen about seven metric ton of gold, 663 metric ton of silver and more than or close to 70,000 metric ton of base metals delivered through the exchange mechanism.
And of course, these are numbers with exchange as a delivery of last resort, but it reflects the health of the kind of volumes on the exchange, which are a combination of trading volumes as well as hedging volumes across all our participants. We’ve also had record turnover of in our commodity futures on the back of the tariff announcement. This of course happened on the 4th of April, so just after the close of the year, but at INR71,500 crores has been a big high and reflects the fact that MCX is really playing its role as we look at managing commodity price risks from global variations that are applicable today. It’s you know with great pride that I can say that MCX in the year 2024 has been announced as the world’s largest commodity options exchange.
And this is also on the back of MCX crude oil options, the MCX natural gas options holding the top position in the FIA ranking as well as MCX gold options and MCX silver options at second position. So both of this again indicates that India and MCX in India as a venue is really becoming popular at the global scale as well. So when we look at our participants, we have had growth across all categories. We’ve had a 39% growth year-on-year with of traded clients touching 13 lakhs and participation across all categories of commercial participants, retail participants, as well as financial institutions. In fact, we have about 140 FPIs who have been onboarded on MCX who have started to contribute to our agency numbers as well.
So I’m really looking-forward to MCX becoming the exchange of choice across-the-board when it comes to managing price risk, when it manage — when it comes to viewing commodity derivatives on an exchange as an asset class and would also really look to working further with our member brokers and the broader capital markets community to educate and bring in more participants and holding them through this process as they get exposed to commodity price management. I’d like to close here and we can open for comments. MCX, both myself as well as our leadership team is available here to take any questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. If anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star N2 and participants are requested to limit their questions to two per participant. If you have a follow-up question, please fall-back to the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Divesh Agarwal from IIFL Capital. Please go-ahead.
Devesh Agarwal
Good afternoon, everyone, and thank you for the opportunity. Firstly, congratulations on a good set of numbers on overall year basis. I think the growth has been phenomenal. My question pertains to the cost increase that we have seen in this quarter. So we see that there has been a sharp increase in the operating cost, basically in the employee cost and software support charges. So can you highlight what has led to such sharp increase in these two-line items? And are there any one-off in this?
Praveena Rai
Thank you, Divesh. I think it’s an important question. When we look at our cost line items, both employee and IT costs is where we’ve seen an increase this quarter-over last quarter. So if I look at the employee expenses, there is a — there is an element here, which pertains to our performance payouts. We’ve had a good year and we’re expecting that to get reflected in those numbers. So if I were to look at the employee expenses, I would cut it at about 75% 25% in terms of the delta with 75% going into a one-time incremental expense associated with performance and 25% is really the readiness from a capacity building standpoint as we go into next year with all our growth plans in-place. So if you look at the IT costs, here we do have a bit of a timing concentration in some of our warranty and sort of annual contract renewals. So there is a 30% sitting here in the delta amount, so INR30 crore minus INR20 crore, INR30 crore is the number for this quarter versus 20 of last quarter. So 30% of that is a one-time expense. 70% is expense, which comes down to an expense that is getting concentrated in the quarter associated with maintenance renewals and so on. So on an annualized basis, one would expect that to continue, whereas 30% is a one-time.
Devesh Agarwal
Right now. Just continuing on that, we also see a sharp increase in your depreciation, assuming there will be a significant capex that you’re entering. I’m assuming again that will be around the tech cost. So just wanted to understand where are we spending this incremental cost because we have just completed our CDP project. So where-is this incremental capex happening on the technology front? What is the expected spend that we are targeting for the year FY ’26? And what run-rate should we assume both in case of opex and depreciation in FY ’26 for your technology?
Praveena Rai
Yeah. We do expect capitalization to sort of depreciation and amortization to continue at these levels. Because as we are growing significantly and I think we just discussed that we are looking at we have doubled our volumes and obviously the tech refresh is a continuous process that would need to be there. There is an element of regulatory change as well as expansion of the kind of network capacity that we require as we have more technology-oriented participants and higher volumes that they are actually performing on the exchange. So all of these are constituents, regulatory network, tech refresh and of course, the BAU expenses, which will keep our — our depreciation at this level.
Devesh Agarwal
Any number that you want to call-out in terms of what could be the likely capex for FY ’26?
Praveena Rai
No. We won’t be able to call-out a specific number, but I can tell you overall at an expense level, we expect our ratios to stay flat.
Devesh Agarwal
Yes. Right. And are we incurring any expenditure in our capex for co-location facilities as well? We recently read a media article suggesting that is kind of contemplating this. So one, are we already starting to spend money for this facilities, co-location facilities? And secondly, where does this trend in terms of implementation?
Praveena Rai
And we will not be able to comment on this at this stage because it’s really based on the business. Until we have regulatory clarity we won’t be able to comment on this.
Devesh Agarwal
All right, ma’am. Thank you so much and all the very best. Thank you.
Praveena Rai
Thank you.
Operator
The next question is from the line of Amit from HDFC Securities. Please go-ahead, the opportunity.
Amit Chandra
Ma’am, my first question is in terms of the product launches. So in the last call also we have indicated that we are in track to launch the index options and the weekly expiry option. So where actually we are in the — in terms of the journey in terms of launching, if you can give some timelines or some clarity on that? And also if you can throw some light on in terms of the launch of the electricity futures contract and what could be the incremental volume opportunity that we see from this contract.
Praveena Rai
So yes, Amit, thank you for that and thanks for joining. So yes, our new products in our roadmap is very much in-place. As you know, there is a lot of homework that is required along with various approvals that we need before we can take this live. So we are — we have full readiness from our side and we are waiting for the right green signal to take this to-market. So we believe that between our indices and new products such as electricity, we will really look at significant growth in the coming time. There is — there is reasonable volatility. There is interest from market participants. And there is also a need for this because India is a very large market when it comes to power.
In fact, they’re the third-largest market globally both from a production and consumption standpoint the government’s energy security, a policy which really is looking at more than 500 gigawatts of renewable power getting generated in the country and the kind of grid lines we have and the national grid available for a very healthy supply-demand network to operate are all leading us in the direction of the fact that this is an important area to be addressed. So I think everyone is on the same page there. It’s now just a question of getting it done. We believe it’s around the corner. I also want to point out, if I may, that we did have a good launch of our Gold 10 futures that is actually in this year because it happened on the 1st of April it was time to kind of match with and has given us some very, very good response in the first month itself. The 10 gram gold coin meeting India good delivery standards has had a very good offtake in the first month.
Amit Chandra
Okay. And ma’am, we have significantly increased our investments in terms of tech enablement? And also can we relate it to our preparedness for the colocation or enabling HFT trading on the platform? And also these like-new launches also require a lot of newer investments, that is what is reflecting in terms of — in terms of our tech cost. So if you can throw more like color on that? And secondly, my next question would be that we have seen the increasing contribution of the contracts in the options segment, which is now 25% of the notion volume and only 9% in terms of the premium contribution. So any reason you can attribute why the gold premiums or in terms of the premium to notion ratio of gold contracts are actually lower than the overall premium to notional ratio of MCF? I know like despite — I know despite gold being a monthly contract. So if you can provide some clarity on.
Rishi Nathany
Yeah. This is,. Answer your question, as we grow naturally, the costs will go up to answer the first part. Second is that in terms of your question on the gold premiums, you have to understand that the premiums are a function not only of time, but of also volatility. Crude, oil and natural gas have higher volatility than gold and that is why you would see the kind of premiums you are seeing in gold. That is why despite the notional being higher, the premium value is substantially lower in proportion and this is a natural function of the volatility within the gold options. However, I’d like to tell you that ever since we’ve made the gold options monthly contracts, we’ve seen a very good uptick in terms of the total notional turnover as well as the premium turnover.
Amit Chandra
Okay, sir. Thank you and all the best for the future.
Praveena Rai
Thank you.
Operator
Thank you. Thank you. For participants, you are requested to limit your questions to two per participant. Thank you. The next question is from the line of Asta Jain from PKDA Advisors. Please go-ahead.
Astha Jain
Hello. Thank you for taking up my questions. I had one question related to the participants, we saw a massive uptick during the Trump tariff. So sir, should we consider that as a one-time thing or should we consider that as a base going-forward?
Praveena Rai
It is from the macro geopolitical standpoint, that’s a very difficult question to answer and I mean it’s really not in our to say how the macroeconomic situation is going to turn out. We do see fair amount of global volatility in the approach across markets, not only from the US but across the world and this will continue to have its impact with reference to how people want to hedge their price risk. But having said that, these will always be events and the baseline we see both experience with an event goes on to create the exposure and experience needed, typically at the end of an event there is a higher participation than at the beginning of the event. So yes, the baseline goes up. The events themselves will be spikes. This year appears to be one which will offer a certain level of natural volatility. With or without that, we do see this impacting the baseline in a positive way.
Astha Jain
Thank you. Okay, sir. Thank you so much. That’s all from my end. Thank you.
Praveena Rai
Thank you.
Operator
Thank you. The next question is from the line of Chintan Sheikh from Girik Capital. Please go-ahead.
Chintan Sheth
Thank you for the opportunity, ma’am. Sorry to harp again on the product launch you have recently from the media learned that has announced in principal approval to NFC for electricity futures. So just trying to understand how — what’s our strategy even if we get the approval, say, during this year that’s expectation, then how should we look at the modules coming through to our platform and what will be our strategy given is already what the principal approved NIX is already there so.
Praveena Rai
I would say that we are working very closely on the matter and it is not in our understanding that there is any approval from the regulator to anybody and I think I’ve sort of addressed the broader opportunity space that is there and the fact that we are at a commodity exchange, this is not a small-business for us. It’s not something that we are trying to enter into as a commodity exchange, highly focused on the energy sector, power is a very natural part of that portfolio and we are highly engaged to make this a good success and we are very positive about it.
Chintan Sheth
And coming to the weekly expiry for the indexes, we believe we were trying to understand, create the future volume initially to drive the drive this a success, where are we in terms of improving our indirectly trending the volume growth has which can drive business for us. So if you can, what are we doing actually over there to type the volumes to kind of business before launching the weekly expiry — the weekly contracts on the inventory. We can to answer your question, let us understand the structure of index products are normally options on — on various other products are options on futures in industry that there is index futures and there will be options on the index itself. So it is not an option on the index futures. It will be the options on index. Therefore, there is hardly any correlation per se between the index futures and the options which will come on the indices.
Rishi Nathany
So these will be cash-settled products, which will be based on the index itself. And where are we in terms of launching and testing those products out? We are in the — we are in pretty advanced-stage and as and when we are ready to go-to-market, we will let the market go.
Chintan Sheth
Sure. And lastly, on the cost side, you did clarified on the portion of one-time in the employees and tax side. Given — given the volumes and the business growing on the options especially, do we — do we anticipate to preempt our investments and tax side to drive and build a more sustainable our platform going-forward and do we see that impacting our numbers because we are already at even with this one-time expense this quarter, our — of margins are pretty healthy and there is scope to deal with some bid to strengthen our infrastructure, especially the IT side and the side. Do we do — are we considering that to further strengthen our business model here.
Praveena Rai
Yes, I think we will be ahead of the curve when it comes to tech investments. We spoke about it even last quarter. So we have developed our agility, which means our speed-to-market when it comes to new products from a tech standpoint, the kind of connectedness that we are able to provide to the market participants and most importantly, our readiness for growth. So all of this is already very much baked-in into our readiness framework for technology.
Chintan Sheth
Sure, ma’am. That’s all from my end. Thank you and all the very best.
Operator
Thank you. Thank you. The next question is from the line of Lawanya from UBS. Please go-ahead.
Lavanya
Hi,. Thank you for opportunity. Just wanted to check a bit on new products. When you say indices — what are all indexes that we are looking at? Is it brillion or can you just elaborate what are all indexes that we are looking at? And also any effort that we are putting in or specifically improving the base metal contracts, which used to be a very good contribution at one point of time.
Praveena Rai
So we have two base metal — sorry, index contracts running right now. One is the Boldex, which is the Boolean index and one is the base metal index call the Metaldex. So these are the two contracts which we have and which we are looking to enhance further through bringing options upon them. In terms of growth in base metals, in the year which we have ended, we’ve seen almost a doubling of volumes in the base metal contracts as well and we are working hard to ensure that those contracts also achieve the necessary traction. However, when you say compared with the past earlier, these contracts long back were cash-settled. Now they are deliverable with India pricing and India price discovery. Hence that timeline to — for the market to adjust to an India pricing and the contracts to again gain traction is going on and we believe that as we go-ahead, these contracts will again get more-and-more volumes in participation now.
Lavanya
Okay, correct, correct. Thank you, sir. And one more question. Would we be able to get split of participation in terms of maybe retail hedgers or a foreign participant? How the trend is now or any sense on that?
Praveena Rai
So as far as you’re talking about base metals or you’re talking about the entire piece? No, broadly, broadly. So broadly, all the numbers are already there on the website. You can just have a look or we publish those numbers on a regular basis. But it doesn’t have specifically for the retail or something. So any broad sense like what kind of retail participation is there see it in there? Yes. But are you looking for the numbers? How many people which have been already provided in the PPT? Is that the one you are looking for? What is the — or you are looking for any retail in specific? The retail specifically on hedges, any broad range is also fine. Okay. So I think the numbers we have shared, we have about INR30 lakh of traded clients. And when you look at large numbers, they will typically come from the retail side. You’re right because commercial clients will tend to be smaller in numbers, so they are either very large corporates or in the SME sector.
Lavanya
Thank you. Thank you so much for the opportunity and all the best.
Operator
Thank. The next question is from the line of Harsh Shah from HSBC Asset Management. Please go-ahead.
Harsh Shah
Yeah. Thank you for the opportunity. Firstly, just one data keeping question is. Can you just help us with the futures revenue and options revenue for this quarter? Yeah. So Harsh, option revenue was 179 Hart this, CFO?
Praveena Rai
Yeah, yeah.. The option revenue for this quarter is INR179 crores and futures revenue is INR75 crores.
Harsh Shah
Okay. Second question is barring the onetime impact or even the time concentration, if you look at form a full-year basis, tech cost was somewhere around INR93 crores. Employee cost for the full-year was around INR144 crores. But from directional perspective, again, barring quarter-to-quarter moment, can we assume that for FY ’26, tech cost will be around INR90 crore to, let’s say, INR100 crore INR110 crore and an employee cost will be between INR150 crore to INR160 crore or directionally also this is not going to be the case?
Praveena Rai
Yeah. I think this number — the numbers would be around these levels. Okay. Just last question from my end is with respect to this capacity building, by any chance are we building capacities to manage the TCS software better. Basically what I’m trying to understand and please correct me if I’m wrong, is by any chance regulators still a little bit of skeptical about the software that we are running, they are still stress-testing it for which you want to build capacities both on hardware, software and personnel? And also is this the reason why there is some sort of hindrance in — with respect to new product launches? Again, please, yeah, feel free-to clarify if I’m mistaken anyway. Just wanted to understand why this cost escalation and why we are not able to launch any product and various regulator in all this. So your comment on not being able to launch a product is a little surprising.
Harsh Shah
How did you arrive at that at that conclusion?
Praveena Rai
No, basically just trying to understand your goal is doing quite decent, but other products it’s been taking some time. So again, I’m just trying to understand what is spending from our perspective or is it — we are done from our — our perspective is only from the regulator and that is spending. Yeah. So we have a number of products in the portfolio. We have natural gas and crude oil, gold, silver, copper, aluminum, zinc, lead, and I think they are all having fairly healthy numbers across futures, options, deliveries and all of this information is available in the deck. When it comes to new products, as stated in the past, we are ready from a technical and go-to-market standpoint and we are waiting for the final set of approvals to come in before we can take it to-market.
Harsh Shah
Okay. Okay. Thank you for answering my questions and apologies if there was any misunderstanding from my end. Thank you and all the best. Thank you.
Praveena Rai
Thank you.
Operator
The next question is from the line of Shalini Gupta from East India Securities. Please go-ahead.
Shalini Gupta
No, my question has been answered. I asking for the transaction fees, which I think you said options is INR179 crores.
Praveena Rai
Futures is INR75 crores. Is correct, sir?
Shalini Gupta
Yes. Yes, sir, my question has been answered, sir. Thank you.
Praveena Rai
Okay. Thank you.
Operator
The next question is from the line of Arpit from IGE. Please go-ahead. MR. Arpit, your line has been unmuted. Please go-ahead with your question.
Arpit
Thank you. Yeah, hi. I wanted to ask a question over the FPI contribution from the FPI participation out of total volume of transaction charges we have got in the quarter.
Praveena Rai
Yeah, it is roughly it is around 16,500 in options and it is about 600 crores in futures. So you can say about 7% of the total turnover. Got it.
Arpit
Thank you. Thank you.
Operator
The next question is from the line of Ashish Kumar from Amper Sand. Please go-ahead.
Ashish Kumar
Yeah, hi. I have two questions. First is with respect to this settlement guarantee fund. So the contributions towards that during the quarter was around INR18 crores, which was similar to last quarter, but it was significantly up on Y-o-Y basis. So I wanted some sense on how we should look at it for this coming year. And the second question is on new products other than electricity futures and whatever we have discussed, any other new products that are in the pipeline for FY ’26?
Praveena Rai
Thanks. Yeah. So SGF is the settlement guarantee fund. So it will be an outcome of the kind of volumes we have and of course, volatility in the market. So I will say that at a high-level calculation, you can keep the ratio. You can assume a sort of similar ratio to continue. Now when it comes to new products, yes, we do have a number of new products in pipeline. Sorry, without sort of getting it to a certain point, we are unable to talk about it further. And priority — top priority for us is the products that we are ready with that where we are keeping real the go-to-market green life. And that will be our first focus as soon as we get those over the line, there’ll be other things to play. Having said that, we also have in the silver category, we are planning to launch the monthly options. So while our options — we launched the 1KG options in the month of November, which is doing phenomenally well. We launched on April, the 10 gram gold, which is also very popular with retail so we are looking at launching in silver micro options, the 30 kg, 5 and so these are all-in play. And these would also be in the shorter timeframe.
Ashish Kumar
Okay. Thank you.
Operator
Thank you. The next question is from the line of Arvind R from Sunderam Alternate. Please go-ahead. Go-ahead.
Aravind R
Thank you so much for the opportunity. Thank you, ma’am. So basically, I wanted to understand like we observe in the equity markets, FY you know like participation is much higher. I understand the nature of like our commodity options are different, but you know the introduction of like options and basically the cash settle contracts and like what other things can be done like to increase the FIA participation here like either index contracts, can it bring like a bigger step-change in like FA participation and what other things can you know like help in like in a more-and-more FA participation manner?
Praveena Rai
Thanks,. So the norms for FPI participation came in the second-half of ’22 and we started participation early in ’23. So it’s been more or less two years. And in those two years, you’ve seen the kind of participation we have. Now we also have to bear in mind that FPIs are only allowed to trade-in crude oil and natural gas. So as and when more-and-more products come under the ambit and more-and-more FPIs come into the market, we will see more participation increasing. So this is early days yet. We are seeing more-and-more FPIs onboard onto the exchange. So we believe that as we go-forward, we will see a more healthy participation from FPIs.
Aravind R
Sure, sure. And like do you think like something like co-location, which happens in equity exchanges can help here also like I’m not — I’m not sure like if it is available with MCX, but do you think that thing can happen like gold location facilities can happen and that can increase not just FPIs, but also other institutional investors and more-and-more participation there.
Praveena Rai
While it remains to be seen, we cannot talk about something which is not there as and when it comes within the regulatory rules, then we will book it up and we can discuss as well.
Aravind R
Sure, sure. Thank you.
Operator
The next question is from the line of Aditya Bhatia from Electron Capital. Please go-ahead.
Aditya Bhatia
Hi, good afternoon. So basically, I think my questions have been answered, but could you give us a mix between what your FPI and DII hedges, etc., what the mix really looks like right now?
Praveena Rai
Sorry, FPI and DIA mix on your hedges here. And so to be honest, our DII portfolio is fairly limited at this point primarily because there are a number of restrictions in for mutual funds and so on to participate in commodity derivatives. But there are some changes to that we are working with the industry to understand the needs of industry and really how we need to incorporate this in the multi-asset portfolios in a more dominant way. So that would be a an action that we’re working on.
Aditya Bhatia
Sure, sure. And is there any push towards more green finance contracts like ESG-linked carbon trading, etc that has been spoken about.
Praveena Rai
You know carbon trading has two-parts. One is a compliance part and the other is voluntary. So I think both of these operate in a very different way in the Indian context and India tends to be more of a global seller than a buyer. So work is in-progress at the broader government policy level when it comes to looking at how carbon training can work and should work-in an Indian context. So we are following that closely. And at the right time when it’s suitable for derivatives to be a component of that, we’ll certainly be there.
Aditya Bhatia
Okay. All right. Okay. That’ll be all from my end. Thank you so much.
Operator
Thank you. Thank you. The next question is from the line of Sanket from Avendus Sparks. Please go-ahead.
Sanket
Yeah. Thank you for the opportunity. And ma’am, I mean, this is a bit of on regulation I mean the regulator came out with a consultation paper of segregating clearing corporations from the exchanges. I know it’s not a final regulation, but just want to understand, suppose it gets implemented and then clearing Corporation, I just want to understand how much they earn from the settlement fees, what you pay them and maybe the float income, what Clearing Corporation earns. So just to understand if the segregation happens, what likely impact could be there on our top-line and bottom-line in that sense?
Praveena Rai
Yeah. Yeah, I think from whatever is available in public, it is quite clear that as it stands, this implication is there for the equity exchanges. So at this stage the Commodity Learning Corporation has a lot more complexity involved and handles warehouses and deliveries and so on and so forth so we are not really expecting this anytime now okay.
Sanket
Okay, got it, ma’am. And the second question, ma’am, is that how do we foresee this settlement guarantee — core settlement guarantee fund cost. So if we do the numbers for the full-year, it comes to around 7 percentage of the total transaction income what you have earned. So is it fair to say that going ahead, given our volumes are increasing, our open interest goes up and then this cost, 7 percentage of the transaction income kind of will be a recurring cost going ahead..
Praveena Rai
So Sanket, this is Chandraj. You see this 7% includes 1% of contribution to IFF and IPF, which is mandated as per SEBI regulation. And the SKF contribution is something which we look at the requirements and we keep adding to that because that helps us in different ways to maybe manage the margins for the members, which helps in increasing the volumes. Okay. But is it fair to say that 5 percentage of the cost given the volumes are inching up will remain — it’s a good problem to have, but just wanted to understand that’s the way it will work. So mostly, yes.
Sanket
Okay. Okay. Got it, sir. And one more thing, ma’am. See, our gold contribution is going up and you alluded to the point that gold invariably will have a lower premium realization compared to a crude or a silver. So is it fair to say that if gold contribution picks up in our ADTO in options, then your premium to notional will see a gradual decline or the premium realization to the notional turnover will see a gradual decline as gold contribution picks up.
Praveena Rai
If you purely look at the statistics-wise calculation mathematically, it depends upon whatever the product that is contributing to the maximum market-share, that will be the influencing factor. But as long as the market volumes are going across the products, I think that is going to be good for the and good for the exchange.
Sanket
Sir, the reason why I asked this question, sir, is that we seek a bit of kind of a cannibalization is when the gold is picking-up, we see crude is taking — not showing so much of growth what we saw in the past. So maybe from your assessment speaking to your members or traders, are you getting a feeling that there is a bit of cannibalization is gold is growing at the expense of crude?
Praveena Rai
Okay. So if you see cannibalization would happen if we were constant and gold grew at the cost of crude oil or other things. We are seeing an overall growth. We have seen 100% growth. So how is there a cannibalization? Everything is growing. There are some things which are growing, growing are contributing to lesser premium to notional, some things are contributing higher premium to notional. So overall, you are seeing — while you may see the overall mix of premium to notional coming down, but as long as the entire premium is going up and the notional is going up and the volumes are going up, it’s a good problem to have, isn’t it? So what to add to Rishi what I said, generally the market-share keeps changing between the products depending upon the market scenario, that is how you look at it. It’s never been the constant scenario.
Sanket
Okay. Okay. Okay, sir. And maybe last one, sir, you said that your option indices will be launched whenever you get the approval. So the nature of the option indices whenever you launch will be weekly expiry or monthly expiry. What’s the thought process?
Praveena Rai
See, we cannot comment on all that. The idea is that whenever we get approval, we’ll launch accordingly and we’ll let the market know. So, I would request you to please wait for that. And as and when it comes, we’ll let the market.
Sanket
Okay. Okay, sir. Fair enough. Thank you very much for your answers.
Operator
Thank you. The next question is from the line of Deepak Ajmera from IGE. Please go-ahead.
Deepak Ajmera
Yeah, hi, good evening. Thanks for the opportunity. Just one quick clarification because I attended the NSE con-call also and management clearly said that they have in-principle approval to start the futures on the energy and you clarified that it — none of the exchange has that approval. So if you can again clarify that point. And second point — second is the feedback. We normally con-call have diamond pass registration. In your case, we have to wait for operator to get-in so you can enable the acces. Thank you.
Praveena Rai
Thank you. Yeah, so your point taken about the second part, we’re looking to it. And in the first part, we have already — our Indian CEO has already clarified. So I don’t think there’s anything else to clarify on that. I mean I see whatever they have said, we have said in their own visitor. We have clarified according to what we know yes, sir, shall we move on to the next question.
Operator
Yes, please. It’s from the line of Divesh Agarwal from IIFL Capital. Please go-ahead.
Devesh Agarwal
Thank you for the follow-up, sir. Just a couple of clarification questions. The FPI share that you mentioned or the volumes that you mentioned INR600 crores in futures and INR16,500 crore in option. Is this an annual average or more of a 4th-quarter average?
Praveena Rai
That’s referring to the recent quarter. 4th-quarter 4th-quarter. Fine. And secondly, did you mention any timelines to launch the Silver monthly option contracts?
Devesh Agarwal
No, we haven’t mentioned any time, but we are working on it. And as and when it depends upon multiple factors and we won’t be able to give any definite date or period by when we can be able to launch, but definitely we are considering these products. Right. So just in case of order, basically we have multiple products which are likely to go-live. You have silver, you have index options, you have electricity and then weekly. Any order that you think based on your discussion with the regulator, which can come first and how the others will follow, whether we’ll see all of them in this year. Any tentative timelines will also help you.
Praveena Rai
Very difficult to predict. We cannot sign any timelines or any order. All we can say is we are working on these products and as and when it is found feasible they will be brought to-market all right thank you so much.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one the next question is from the line of Lawanya from UBS. Please go-ahead.
Lavanya
Hi, thank you for the follow-up, sir. So just on the index options. So currently we have index futures which are not seeing much traction. So how do you see this differently when options are provided and any upwards that in terms of participation that they are currently already working on? Like how do you see features different from options.
Praveena Rai
Both are independent to each other because unlike other products, unlike other products, index options or index which is used can be or considered to be independent because they’re going to be settled based on underlying index okay so they can operate differently the way it wanted to operate, how the product is going to be designed. But by is not so much traction there is index futures. Any sense there out any efforts from our side to enhance Index future options — future volumes? So we are will be working on index futures and other products as we work on all products. It is for the market to, you know, take-up which products they like. Of course, we put in all our efforts. Having said that, Praveen has already clarified that normally all the products we have and options are based on futures, but these products are based in the index itself, so they are discrete from each other.
Operator
Thanks. Thank you. Ladies and gentlemen, that was the last question for today’s conference call. I would now like to hand the conference over to Ms Pravina Ray for closing comments.
Praveena Rai
Thank you. Thank you so much for your time. It’s been a wonderful discussion, very intriguing questions. It helps us also to explore and see what we need to do next. Your interest in MCX you know keeps us inspired honestly and look-forward to staying connected we expect to have a good year ahead and we’ll stay-in touch thank you.
Operator
On behalf of Multi-commodity Exchange of India Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.