MCX to start base metals futures indices from today. All you need to know

Multi Commodity Exchange (MCX) , the country’s largest commodities exchange, had got an approval for the indices from the Securities and Exchange Board of India (Sebi) on June 29 and had begun mock trading on July 31.

Multi Commodity Exchange (MCX) will formally launch its base metal futures indices, MCX iComdex base metals index futures, from Monday. The country’s largest commodities exchange had got an approval for the indices from the Securities and Exchange Board of India (Sebi) on June 29 and had begun mock trading on July 31.

Gold bars are seen at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria in this file photo. (Reuters Photo)

Here’s is all you need to know about the new base metal futures indices:

1. Metals being traded on its platform are gold, gold mini, silver, silver mini, copper, zinc, lead and nickel.

2. The base metals futures contracts expiring in November and December 2020 and January 2021 will be available for trading from Monday, MCX had said in September.

3. The contracts for further expiries will be launched according to the enclosed contract launch calendar, it said.

4. It had said that the contract specifications and trading parameters of the contracts shall be binding on all the members and constituents trading through them and that the settlement of the contracts will be carried out through the MCX Clearing Corporation as detailed on August 17.

5. MCX had said that each contract will start on the 15th day of contract launch month and trading will take place Mondays through Fridays from 9am to 11:30/11:55pm.

6. Before this, MCX was trading on bullion index, Bulldex, from August 24 making it the country’s first such index on underlying bullion futures contracts, expiring in September, October and November.

7. The Bulldex is the sixth product in bullion complex with 1-kg gold, 100-gm goldmini, 8-gm gold guinea and 1-gm gold peta, while the Options on Futures on 1-kg gold is already in place. It had recently also launched options on goods in 100-gm goldmini contracts.

8. MCX had tested bullion index futures trade in mock trading exercises in July.

9. The Commodity and Derivatives Exchange had on May 25 launched the first index futures contract called Agridex, which has 10 farm commodities as underlying.

10. MCX had also said then that it was planning to launch recycled base metals delivery in some time.