MCX shares rise 3% as exchange launches options on bullion index BULLDEX

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 -- MCX iCOMDEX Bullion Index (MCX BULLDEX).

MCX BULLDEX represents the precious metals segment and is composed of the highly traded MCX Gold and Silver Futures contracts. The newly introduced options contracts aim to provide market participants with an efficient and versatile risk management tool that combines diversified exposure with the flexibility of options trading.

The index offers balanced exposure to both gold and silver, enabling investors and institutions to manage price risks in a convenient and cost-effective manner. This launch aligns with MCX's stated goal of expanding India's commodity derivatives market through product innovation, improved transparency and investor-friendly solutions.

According to the exchange, options on commodity indices have gained popularity globally as investment and hedging instruments. A sectoral index such as MCX BULLDEX is designed to help market participants manage price risks more effectively across the bullion segment. The exchange also stated that the index adheres to the International Organisation of Securities Commissions (IOSCO) Principles for Financial Benchmarks (July 2013) in its computation and governance framework.

Commenting on the development, Praveena Rai, Managing Director and CEO of MCX, said, "The introduction of Options on MCX BULLDEX marks a pivotal development in India's commodities ecosystem. This unique and innovative product will enhance the range of offerings in the commodity derivatives market and enable participants to take exposure to a basket of bullion commodities."

Operational since 2003, MCX is India's leading commodity derivatives exchange and the largest commodity options exchange globally, with around 98 per cent market share in the value of commodity futures traded during FY 2024–25.