MCX, the biggest exchange in India for trading in derivative contracts on bullion and base metals, is launching monthly options contracts on Bulldex, the bourse’s bullion index, on Monday. Initially contracts expiring in Nov, Dec and Jan of next year will be available for trading. The MCX BULLDEX® Index is a balanced mix of Gold and Silver Futures, the two most traded precious metals on the MCX. The Options contracts on the index are expected to give market participants more flexibility in managing portfolio exposure and provide an expanded range of hedging instruments in the Indian commodities market.

The launch of options contracts on bullion index on MCX, based on gold and silver, comes at a time when the country saw one of most frenzied buying phases for gold and silver in history. The new offering aligns with MCX’s commitment to deepen India’s commodity markets through product innovation and transparency. Incidentally, India is the world’s top country in terms of number of options contracts traded, data from Futures Industry Association.

Shares of Multi Commodity Exchange of India Ltd (MCX) gained 2.52 per cent in Monday’s trade, reaching a high of Rs 9,244.90 on BSE. The stock advanced after the exchange announced the launch of monthly options contracts on its bullion index