MCX launches futures trading in base metals index
In a statement, the exchange said the Base Metals Index will track real-time performance of a basket of MCX Base Metal (near month) futures that includes zinc, copper, nickel, lead, and aluminium.
By PTI | Updated:
Agencies
New Delhi; After bullion index, leading commodity bourse MCX on Monday launched futures trading in real-time Base Metals Index 'METLDEX'.
In a statement, the exchange said the Base Metals Index will track real-time performance of a basket of MCX Base Metal (near month) futures that includes zinc, copper, nickel, lead, and aluminium.
Presently, it carries around 33.06 per cent weight for zinc, 29.81 per cent for copper, 14.77 per cent for nickel, 12.88 per cent for lead and 9.48 per cent for aluminium.
According to MCX, three contracts expiring in November, December and January are available for trade. 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.
The final settlement price will be based on the Volume Weighted Average Price (VWAP) of the underlying constituents between 4-5 pm on the expiry day of the index futures contract, it said.
"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," MCX Managing Director and CEO P S Reddy said.
On August 24, the exchange had launched the MCX Bullion Index (MCX BULLDEX) futures and since then it has clocked an average daily turnover of Rs 251.2 crore as on October 15, the statement added.
In a statement, the exchange said the Base Metals Index will track real-time performance of a basket of MCX Base Metal (near month) futures that includes zinc, copper, nickel, lead, and aluminium.
Presently, it carries around 33.06 per cent weight for zinc, 29.81 per cent for copper, 14.77 per cent for nickel, 12.88 per cent for lead and 9.48 per cent for aluminium.
According to MCX, three contracts expiring in November, December and January are available for trade. 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.
The final settlement price will be based on the Volume Weighted Average Price (VWAP) of the underlying constituents between 4-5 pm on the expiry day of the index futures contract, it said.
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"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," MCX Managing Director and CEO P S Reddy said.
On August 24, the exchange had launched the MCX Bullion Index (MCX BULLDEX) futures and since then it has clocked an average daily turnover of Rs 251.2 crore as on October 15, the statement added.
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