MCX introduces options on Bullion index; shares jump 2.5 pc

India’s Multi Commodity Exchange (MCX) introduced new options contracts for its MCX iCOMDEX Bullion Index (MCX BULLDEX) on Monday, creating fresh opportunities for investors to navigate the soaring gold and silver markets through a single instrument.

These contracts went live on October 27, tracking an index composed of MCX’s most active gold and silver futures contracts. By blending both precious metals, the index provides balanced market exposure while leveraging the liquidity of India’s largest commodity derivatives platform.

Market participants now gain access to enhanced risk management capabilities through this product, which merges diversified asset exposure with the strategic advantages of options trading. The launch supports MCX’s broader mission to expand India’s commodity markets through progressive financial instruments.

Commenting on the development, MCX Managing Director & CEO Praveena Rai stated, “Options on MCX BULLDEX represent a significant milestone for India’s commodity markets.” She emphasized that the product offers “a strategic avenue for market participants to engage with bullion commodities through a basket approach.”

The index options debut during a historic bull run for precious metals, with gold prices surging over 50% and silver climbing nearly 70% this year amid strong investor demand.

These monthly contracts follow a three-month rolling cycle featuring near-month, mid-month, and far-month expiries. New contracts automatically replace expired positions, ensuring uninterrupted tradability.

Trading hours span Monday to Friday between 9:00 AM and 11:30 PM/11:55 PM, adjusted for US daylight saving time. At launch, the contract value approximates ₹5 lakh.

Investors responded positively, driving MCX shares up 2.5% to an intraday peak of ₹9,244.90 on the BSE following the announcement.

(With inputs from IANS)