MCX launches futures trading on MCX METLDEX, India’s first real-time Base Metal Index

The exchange has launched METLDEX futures expiring in the months of November 2020, December 2020 and January 2021.

Oct 19, 2020 02:10 IST India Infoline News Service

Multi-Commodity Exchange of India Ltd (MCX), India’s largest exchange in the commodity derivatives segment, launched futures trading on the country’s first tradable real-time Base Metals Index, i.e. MCX iCOMDEX Base Metal (METLDEX).

The exchange has launched METLDEX futures expiring in the months of November 2020, December 2020 and January 2021. Atleast 3 consecutive month contracts will be available at all times. The contract has a lot size equal to 50 times of underlying MCX iCOMDEX Base Metals Index. The tick size (minimum price movement) for the contract is Re.1. The contracts would finally be settled in cash at the end of expiry of each contract.  The final settlement price will be based on the Volume Weighted Average Price (VWAP) of the underlying constituents between 4:00 p.m. and 5.00 p.m. on the expiry day of the index futures contract.

The sectoral index tracks real-time performance of a basket of MCX Base Metal (near month) futures that includes Zinc (5 MT), Copper (2.5 MT), Nickel (1.5 MT), Lead (5 MT) and Aluminium (5 MT) futures. Presently it carries around 33.06% weight for Zinc, 29.81% for Copper, 14.77% for Nickel, 12.88% for Lead and 9.48% weight for Aluminium.

On August 24, 2020, the Exchange has launched MCX Bullion Index (MCX BULLDEX) futures. Since inception BULLDEX futures clocked an average daily turnover of Rs 251.2 crore as on October 15, 2020.

“After successful launch of bullion index futures, we are glad to introduce METLDEX futures that will further strengthen commodities as asset class in the country. Index trading will facilitate instant portfolio diversification and encourage passive, thematic elements in portfolios. The Index will soon emerge as a new real time barometer for Indian metal industry,” said Mr. P.S. Reddy, MD & CEO, MCX.

Multi Commodity Exchange of India Ltd is currently trading at Rs1,779 up by Rs36.55 or 2.1% from its previous closing of Rs1,742.45 on the BSE.
The scrip opened at Rs1,720.05 and has touched a high and low of Rs1,800 and Rs1,720.05 respectively.

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