‘P. Sarojini’
Mumbai (CWBN)_ India’s leading commodity bourse Multi Commodity Exchange (MCX) launched Base Metals Index ‘METLDEX’ on October 19. The base metal index was launched over a month after the launch of MCX Bullion Index, BULLDEX, which was launched on August 24, with gold and silver as underlying.
MCX said in a statement that the Base Metals Index will track real-time performance of a basket of MCX Base Metal (near month) futures, i.e., zinc, copper, nickel, lead and aluminium. MCX further added that in the Base Metals Index, currently 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 weight for aluminium.
MCX Managing Director and CEO P S Reddy said “(Base Metals) 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 has so far revealed METLDEX futures expiring in November 2020, December 2020 and January 2021. A minimum of 3 consecutive month contracts will be available at any given time. The lot size of each contract is 50 times that of underlying MCX iCOMDEX Base Metals Index and tick size (minimum price movement) is 1 Rupee.
The METLDEX futures contracts will be finally settled in cash on the expiry day of each contract between 4 pm and 5 pm, and the final settlement price will be based on the Volume Weighted Average Price of the underlying constituents.
