You are here: Home » PTI Stories » National » News
Business Standard

MCX launches new index series on commodity futures

Business Finance

Press Trust of India  |  New Delhi 

Leading commodity bourse MCX on Monday launched a new index series, MCX iCOMDEXTM, on commodity futures.

A commodity index is an investment vehicle that tracks a basket of commodities to measure their price and investment return performance.

The new index series consists of a composite index, sectoral indices and single commodity indices, the Multi Commodity Exchange of India Ltd (MCX) said in a statement.

The composite index consists of eleven liquid futures contracts across different segments traded on MCX, while two sector indices are launched focusing on bullion and base metals.

Besides, single-commodity indices have been launched in four commodities -- gold, silver, copper and crude oil.

"These indices are based on commodity futures contracts traded on MCX and conform to the SEBI-prescribed guidelines for the design of commodity indices," MCX said.

These indices adhere to financial benchmarks set by the International Organization of Securities Commissions (IOSCO) in construction, administration and governance.

Commenting on the launch, MCX CEO and Managing Director P S Reddy said the indices conform to SEBI guidelines and have also been designed in line with IOSCO Principles for financial benchmarks, making them eligible for launching derivative products on them.

"We are confident that when products 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," he added.

MCX also offers futures and options trading on its platform. It has a large presence in non-agricultural commodities.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, December 23 2019. 15:45 IST