With gold and silver as underlying, Bulldex will have a market lot size of 50 and be cash-settled.
Multi Commodity Exchange (MCX) will launch the country’s first bullion index, Bulldex, on August 24 i.e. Monday. Bullions, viz. gold and silver, are currently traded as individual commodities on the country’s premier commodity exchange. With gold and silver as underlying, Bulldex will have a market lot size of 50 and be cash-settled.
“MCX iCOMDEX Bullion Index Futures contracts, expiring September, October and November, will be available for trading with effect from August 24,” the commodity exchange had said in a circular last weekend.
Gold is considered as a currency of last resort and a safe haven in times of economic and geo-political distress. It is also widely viewed as a hedge against inflation. On the other hand, silver is an industrial commodity mainly used in manufacturing and industrial fabrication. It also finds applications in diverse areas such as dentistry and computer motherboards.
The contract specifications and trading parameters of the contract shall be binding on all members of the exchange and constituents trading through them, the exchange had added in its note.
Precious metals, gold and silver are actively traded commodities on the Multi Commodity Exchange. In the bullion segment, MCX offers 1 kg gold, goldmini, gold guinea and gold petal contracts, as well as silver, silver mini and silver micro contracts. It also has options contracts on gold and gold mini.
The precious metals are trading around record highs. The rally, which began in March, has led to a multi-fold rise in daily volumes on the MCX and the introduction of bullion futures contract will add further participation and depth to the bullion markets, say commodity analysts.
MCX had launched Agridex on May 25. Agridex has 10 farm commodities as underlying.
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