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METLDEX launch in October: Key things to know about MCX's base metal index

METLDEX launch in October: Key things to know about MCX's base metal index

METLDEX launch in October: Key things to know about MCX's base metal index
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By Ankit Gohel  Sept 23, 2020 2:11:38 PM IST (Published)

The country’s largest commodity exchanges, Multi Commodity Exchange of India (MCX) has announced the launch of futures contracts with MCX iCOMDEX Base Metals index named MCX METLDEX.

The country’s largest commodity exchanges, Multi Commodity Exchange of India (MCX) has announced the launch of futures contracts with MCX iCOMDEX Base Metals index named MCX METLDEX.

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The metal index futures contracts will be available for trading with effect from Monday, October 19, 2020.
Three futures contracts of the metal index expiring in the months of November 2020, December 2020 and January 2021 will be available for trading.
Last month, the exchange had launched trading in bullion index futures on MCX iCOMDEX Bullion index or the MCXBULLDEX.
Here are some key details of MCX METLDEX:
Symbol: MCXMETLDEX
Underlying Index: MCX iCOMDEX BASE METAL
Contract Start Day: 15th day of contract launch month. If 15th day is a holiday then the following working day.
Last Trading Day: One business day prior to the start of rollover period in the underlying constituent/(s) index.
Trading Period: Mondays through Fridays
Trading Session: Monday to Friday: 9:00 am to 11:30 / 11:55 pm.
Trading Unit (1 Lot): Rs  50 MCX iCOMDEX Base Metal Index
Maximum Order Size: 80 Lots
Daily Price Limits: The base price limit will be 4%. Whenever the base daily price limit is breached, the relaxation will be allowed upto 6% without any cooling-off period in the trade.
In case the daily price limit of 6% is also breached, then after a cooling-off period of 15 minutes, the daily price limit will be relaxed upto 9%.
In case price movement in underlying Commodity Index is more than the maximum daily price limit of index futures (currently 9%), the price limit of the index futures may be further relaxed in steps of 3% and informed to the Regulator immediately
Initial Margin: Minimum 5% or based on SPAN whichever is higher.
Extreme Loss Margin: Minimum 1%
Additional and/or Special Margin: In case of additional volatility, an additional margin (on both buy & sell-side) and/or special margin (on either buy or sell side) at such percentage, as deemed fit; will be imposed in respect of all outstanding positions.
Maximum Allowable Open PositionFor individual clients: 1,000 lots or 5% of a market-wide open position, whichever is higher for all MCX iCOMDEX Base Metal index futures contracts combined together.
For a member collectively for all clients: 10,000 lots or 15% of market wide open position, whichever is higher for all MCX iCOMDEX Base Metal index futures contracts combined together.
Due Date Rate: The Final Settlement Price will be the underlying Index price arrived at based on the Volume Weightage Average Price of the constituents of the Underlying Index between 4:00 pm and 5:00 pm on the expiry day of the Index futures contract.
Settlement Mechanism: The contract would be settled in cash.
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