MCX launches commodity indices; trading expected in a month or two

India’s largest commodity exchange, the Multi Commodity Exchange of India (MCX), has launched a series of new indices based on commodity futures contracts traded on the platform.

An MCX official said the exchange just started disseminating real-time index values. "The company has applied to the Securities and Exchange Board of India (Sebi) for future trading in two sectoral indices -- bullion and metal index. Subject to Sebi's approval, the launch for derivatives trading on that will be in January or early February."

Developed by an in-house research and development team, these indices conform to the Sebi and International Organization of Securities Commissions (IOSCO) standards. The new set of indices, however, replaces the existing ones that were developed in association with Thomson Reuters a few years ago.

MCX has also introduced sector and commodity specific indices, which may be allowed for trading as and when permitted by the regulator.

“We are confident that when products (viz. futures, exchange traded funds or ETFs etc.) on these indices are launched, all classes of investors shall be able to take exposure to commodities/commodity segments in a very cost-efficient manner,” said P S Reddy, managing director and chief executive officer, MCX.