MCX Launches ‘METLDEX,’ India’s First Base Metals Futures Index

Multi Commodity Change (MCX), the nation’s main commodity bourse, launched Base Metals Index ‘METLDEX’ on October 19. The bottom steel index comes simply over a month after the launch of MCX Bullion Index, BULLDEX. The bullion index was launched on August 24, with gold and silver as underlying.

The Base Metals Index will monitor real-time efficiency of a basket of MCX Base Steel (close to month) futures, viz. zinc, copper, nickel, lead, and aluminium, MCX mentioned in an announcement. Within the Base Metals Index, zinc carries a weightage of round 33.06 per cent, copper accounts for 29.81 per cent, nickel has 14.77 per cent weightage, lead, 12.88 per cent and aluminium, 9.48 per cent, MCX added.

“(Base Metals) Index buying and selling will facilitate on the spot portfolio diversification and encourage passive, thematic parts in portfolios. The Index will quickly emerge as a brand new actual time barometer for Indian steel trade,” MCX Managing Director and CEO P S Reddy mentioned.

MCX has unveiled METLDEX futures expiring in November 2020, December 2020 and January 2021, as of now. At the very least 3 consecutive month contracts might be out there at any given time. The lot dimension of every contract is 50 occasions that of underlying MCX iCOMDEX Base Metals Index and tick dimension (minimal value motion) is Rs 1.

The METLDEX futures contracts might be settled in money between 4 pm and 5 pm on the expiry day of the index futures contract and the ultimate settlement value might be primarily based on the Quantity Weighted Common Value of the underlying constituents.