MCX launches futures trading on Base Metals Index-METLDEX

Oct 20 2020 05:44 PM
MCX launches futures trading on Base Metals Index-METLDEX

MCX launches futures trading on Base Metals Index-METLDEX

Multi Commodity Exchange of India Limited (MCX) launched futures trading on the country’s first tradable real-time Base Metals Index, i.e. MCX METLDEX in the commodity derivatives segment. It will track the real-time performance of a basket of MCX base metals futures. up to now, domestic metal prices pivoted to the London Metal Exchange (LME) prices. METLDEX is based on the basket of 5 base metals.  They are namely zinc (5 mt), Copper (2.5 mt), Nickel (1.5 mt), Lead (5 mt) and Aluminium (5 mt). Currently it carries around 33.06 percent weight for Zinc, 29.81 percent for Copper, 14.77 percent for Nickel, 12.88 percent for Lead and 9.48 percent weight for Aluminium.

On Monday, October-20, Multi Commodity Exchange launched three futures expiring in the months of November 2020, December 2020 and January 2021. At least 3 successive 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, i.e, the minimum price movement for the contract, is Re 1. The contracts would be settled in cash at the end of the expiry of each contract. In August, the MCX had launched trading in bullion index futures on MCX iCOMDEX Bullion index or the MCXBULLDEX.

Multi Commodity Exchange of India offers to trade in commodity derivative contracts across various segments such as bullion, industrial metals, energy, and agricultural commodities. Reacting to the news, MCX share price today closed at Rs 1,766.80, up by 1.40 percent or Rs 24.35 per share on Bombay Stock Exchange.

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