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NCDEX, one of the leading agricultural commodity exchanges, has partnered with NSE Indices, a subsidiary of NSE, to launch return-based agricultural futures index Agridex.
As a third party service provider, NSE Indices will maintain and disseminate real time NCDEX Agridex values.
The index represents a basket of ten commodities that are selected based on both liquidity and its importance in Indian and global commodities market.
Agridex tracks and replicates the performance of ten most liquid commodities traded on the Ncdex’s platform.
Kapil Dev, EVP, NCDEX said the NCDEX Agridex will act as a robust indicator of the broader market and its strong surveillance will give enough confidence to the traders.
Ncdex will launch tradable futures contracts on Agridex after taking Sebi approval.
Agridex contracts will be cash settled as per Sebi’s guidelines. These index futures contracts will not only provide the opportunity to hedgers to hedge their position in more dynamic way but also provide a trading and arbitrage opportunities for market participants.
As index represents a diverse basket of commodities, it is less risky and more predictable compared to individual commodity.
Futures trading on Agridex will also enhance overall liquidity on the exchange platform, he said.
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