MCX India is launching Bullion Index ( iCOMDEX ) on 24 August 2020.
iCOMDEX Bullion Index Futures Contracts will be available for trading starting 24 August expiring September, October and November.
The bullion index, Bulldex, being launched by MCX 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.
Having gold and silver as underlying, the Bulldex will have market lot size of 50 and, unlike gold and silver contracts, it will be a cash-settled futures contract, thus making it attractive for hedgers and institutional participants, who are hesitant in taking delivery of gold and silver, a MCX statement said.
Long-term investors can use the MCX iCOMDEX Bullion Index to gain from exposure to the bullion sector as a whole. The Index can also be used as a powerful portfolio diversifier on account of its low volatility and low correlation with other financial assets over a long period. Further, the diversification potentially reduces volatility in comparison to single commodity exposures.