MCX To Offer Base Metal Future Indices From 19 Oct

Earlier this week, MCX- the country's largest commodities exchange- announced the formal launch of its base metal futures indices from 19 October 2020.

To be called MCX iComdex base metals index futures, the launch of futures contracts with the MCX iCOMDEX Base Metals index is named MCX METLDEX. Contracts expiring in November and December 2020 and January 2021 will be available for trading from 19 October, the exchange added.

The contracts for further expiries will be launched according to the enclosed contract launch calendar, MCX said, adding the contract specifications and trading parameters of the contracts shall be binding on all the members and constituents trading through them and that the settlement of the contracts will be carried out through the MCX Clearing Corporation as detailed on 17 August.

The base metals being traded on its platform are gold, gold mini, silver, silver mini, copper, zinc, lead and nickel.

The exchange said each contract will start on the 15th day of contract launch month and trading will take place Mondays through Fridays from 9 am to 11:30/11:55 pm.

On 24 August, launched trading on bullion index, Bulldex, making it the country's first such index on underlying bullion futures contracts, expiring in September, October and November.

The September 2020 expiry contract of BULLDEX concluded successfully at 5 pm on 23 September 2020 with a record open interest of 646 lots.

Bulldex is the sixth product in bullion complex 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. It had recently also launched options on goods in 100-gm goldmini contracts.

The exchange is likely to get more serious participation in the bullion futures adding depth to the commodity derivatives market.