Shares of the Multi Commodity Exchange of India (MCX) registered sharp gains on Monday, October 27, after the commodity derivatives bourse launched options contracts on its bullion index, BULLDEX. The stock jumped as much as 3.4 per cent to Rs 9,320 apiece on BSE, The rise reflects investor optimism that the new offering will drive higher trading volumes and boost transaction revenue for the exchange.
What is the MCX BULLDEX options contract?
The MCX BULLDEX index tracks the combined performance of gold and silver futures traded on the exchange. The newly introduced monthly options allow traders to take exposure to bullion price movements through a single instrument, simplifying hedging and speculation.
According to MCX, the product aims to make bullion trading more efficient for both retail and institutional investors. It also aligns India’s commodity market structure with global practices, where index-based options are among the most actively traded derivative products.
The introduction of options on the MCX Bullion Index (BULLDEX) marks a key milestone in India’s commodities market, said MCX Managing Director and CEO Praveena Rai. She described it as an innovative product that expands the exchange’s derivatives offerings and enables investors to take exposure to a diversified basket of gold and silver.
Gold price near all-time high
The rollout comes amid a sharp rally in bullion prices this year, with gold up over 50 per cent and silver nearly 70 per cent on strong global demand and safe-haven buying. Trading will be open from Monday to Friday between 9 a.m. and 11:30/11:55 p.m., depending on US daylight saving timings, with each contract valued at a minimum of Rs 5 lakh at launch.
With about 98 per cent share in the overall value of commodity futures traded in India, MCX remains the country’s dominant commodity exchange.
The launch of index-based options is expected to strengthen its leadership position and deepen liquidity in the bullion segment. It comes at a time when gold and silver prices are swinging sharply due to global tensions and uncertainty over interest rates.