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MCX Launched India’s First Base Metals Futures Index METLDEX

On October 19, MCX (Multi Commodity Exchange), the country’s leading commodity bourse, launched Base Metals Index ‘METLDEX’. This base metal index launched just after a month of MCX Bullion Index, BULLDEX launched . The bullion index was launched on August 24, with gold and silver as underlying.

Multi Commodity Exchange said that the main aim of Base Metals Index is to track real-time performance of a basket of MCX Base Metal futures, zinc, copper, nickel, lead, and aluminium. In the Base Metals Index, zinc ship a weight of 33.06 per cent, copper around 29.81 per cent, nickel has 14.77 per cent weightage, lead, 12.88 per cent and aluminium, 9.48 per cent.

MCX Managing Director and CEO P S Reddy said Base Metals Index trading will make smooth instant portfolio diversification and encourage passive, thematic elements in portfolios. The Index will soon come out as a new real time barometer for Indian metal industry.

As of now MCX has uncovered METLDEX futures expiring in Nov 2020, Dec 2020 and Jan 2021. At least 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.

Between 4pm and 5pm The METLDEX futures contracts will be settled in cash on the expiry day of the index futures contract. The final settlement price will be focused on the Volume Weighted Average Price.

After successful launch of bullion index futures, we are glad to introduce METLDEX futures that will further strengthen commodities in the country. The Index will soon emerge as a new real time barometer for Indian metal industry said , PS Reddy, MD & CEO, MCX.

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