InvestorQ : Can you tell me about the latest index launched by MCX?
indhumathi Sayani made post

Can you tell me about the latest index launched by MCX?

Answer
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4 weeks ago


MCX recently launched the country’s first bullion index, MCX iCOMDEX Bullion, better known as Bulldex. It will track the real-time performance of the gold (1 kg) and silver (30 kg) futures contracts and create a contract that offers a benchmark for traders.

It will be a portfolio in which gold will have a weightage of 70.52% and silver will have a weight of 29.48%. It will eventually allow traders and hedgers to diversify their portfolios. It is likely to be a good hedge due to its low correlation to equity and other asset classes.

The Bulldex index futures for the months of September, October and November are now available for trading. The contract will have a lot size equivalent to 50 times the underlying Bullion Index. The contracts will be settled in cash at expiry and there will be no delivery.

The final settlement price on expiry day will be the VWAP of the constituents of the underlying index, gold and silver, in the same proportion that they are in the index. As a boost to index trading, the exchange has waived the transaction fee for first 3 months.