MCX To Launch India's First Bullion Index On 24 Aug

Multi Commodity Exchange of India (MCX) is going to launch the country's first bullion index, Bulldex, on 24 August.

"MCX iCOMDEX Bullion Index Futures contracts, expiring September, October and November, will be available for trading with effect from August 24," the commodity exchange said in a circular on Saturday.

The bullion index, Bulldex, is the sixth product in bullion complex by MCX along with 1-kg gold, 100-gm goldmini, 8-gm gold guinea and 1-gm gold peta, while the Options on Futures on 1-kg gold is already in place.

The bourse recently launched options on goods in 100-gm goldmini contract.

Having gold and silver as underlying, the Bulldex will have a market lot size of 50 and, unlike gold and silver contracts, it will be a cash-settled futures contract, thus making it attractive for hedgers and institutional participants, who are hesitant in taking delivery of gold and silver, a MCX statement said.

As a result, the exchange is likely to get more serious participation in the bullion futures that will add depth to the commodity derivatives market.

Also, the rally seen in gold and silver prices since mid-March to record highs is also expected to be beneficial for MCX, which had recently witnessed its daily trade volume rising multi-fold due to higher prices and increased volatility in gold and silver.

MCX had tested bullion index futures trade in mock trading exercises in July.

The exchange also has indices on base metals and energy, which will be launched in a phased manner after regulatory approvals, the statement said.