MCX iComdex Bullion logs ₹215 cr turnover on debut

The MCX iComdex Bullion has logged a turnover of ₹215 crore on first day of trading on Monday. The open interest was at 234 lots and volume was 2,650 lots.

The index was down marginally by 0.02 per cent at 16,245 points. The Exchange has waived the transaction fee for a period of first three months.

The MCX iCOMDEX Bullion Index has launched future contracts expiring in September, October and November.

The sectoral index tracks the real-time performance of the Gold (1kg) and Silver (30kg) futures contracts. At present, it carries about 70 per cent weight for gold and 30 per cent for silver. The weights are rebalanced annually, every January.

PS Reddy, Managing Director & CEO, MCX said the product will help market participants to optimise their asset allocation through portfolio diversification due to its low correlation to equity. The real-time index values will also act as perfect benchmark that can be replicated with low tracking error for passive investment strategies and help in managing portfolios efficiency, he said.

The contract has a lot size equal to 50 times of underlying MCX iCOMDEX Bullion Index. The tick size (minimum price movement) for the contract is ₹1. The contracts would be finally settled in cash at the expiry of each of the contract.

The final settlement price will be the underlying index price arrived at based on Volume Weighted Average Price of the constituents of the underlying index between 4 pm and 5 pm on the expiry day of the index futures contract.