23 Feb 2020 | 5:32 AM


MCX launches new index series on commodity futures
  Multi Commodity Exchange of India Ltd. | 17 Jan 2020 | 10:51 AM
Published on 12-23-2019
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.