MCX introduces options on Bullion index; shares jump 2.5 pc

Mumbai, Oct 27 (IANS) The Multi Commodity Exchange of India (MCX) on Monday launched options contracts on its MCX iCOMDEX Bullion Index (MCX BULLDEX), giving investors a new way to trade and manage risk in the fast-rising gold and silver markets.  

The options contracts became effective today (October 27). The MCX BULLDEX index is made up of the highly traded and liquid gold and silver futures on the exchange.

By combining both metals, the index offers market participants -- including investors and institutions -- a balanced exposure to the bullion segment.

MCX said the new options contracts will give traders a powerful risk management tool that combines the advantages of diversified underlying assets with the flexibility of options trading.

The exchange added that the launch aligns with its goal of deepening India’s commodity markets through innovation, transparency, and investor-friendly products.

Speaking about the development, Praveena Rai, MD & CEO of MCX, said, “The introduction of options on MCX BULLDEX marks a pivotal development in India’s commodities ecosystem.”

“This is a unique and innovative product that will enhance the range of offerings in the commodity derivatives market and help participants take exposure to a basket of commodities in the bullion segment,” Rai added.

The launch comes at a time when gold and silver prices have seen a sharp rally this year. Gold has surged more than 50 per cent, while silver has jumped nearly 70 per cent, driven by strong global demand and safe-haven buying.

The monthly index contracts will have a three-month trading cycle -- near month, mid-month, and far month.

Once a near-month contract expires, a new one is introduced, ensuring continuous trading.

Investors can trade these options from Monday to Friday between 9 am and 11:30/11:55 pm, depending on US daylight saving timings.

According to MCX, the derivative contract will be valued at a minimum of Rs 5 lakh at the time of its launch in the market.

Following the announcement, MCX shares jumped 2.5 per cent to hit a day’s high of Rs 9,244.90 on the BSE.

--IANS

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