The Multi Commodity Exchange of India Ltd (MCX) announced on Monday the launch of monthly options contracts based on its bullion index, MCX BULLDEX, with the aim of providing enhanced hedging tools for investors in the precious metals market.
Starting on the same day, the options contracts are linked to an index that consists of MCX’s gold and silver futures contracts, enabling market participants to achieve diversified exposure to both metals through a single instrument.
An option is defined as a financial derivative that allows the buyer the right, but not the obligation, to purchase or sell a specified quantity of an underlying asset at a predetermined price—known as the strike price—on or before a set expiration date.
The MCX BULLDEX index supplies balanced exposure to the bullion segment, providing a cost-effective solution for both investors and institutions while meeting their investment and hedging needs, according to the exchange. Furthermore, the index adheres to the benchmarks established by the International Organisation of Securities Commissions (IOSCO) in terms of its computation and governance.
“This introduction of options on MCX BULLDEX represents a significant advancement in India’s commodities ecosystem,” said MCX Managing Director and CEO Praveena Rai in a regulatory announcement. “This unique and innovative product will broaden the range of offerings in the commodity derivatives sector, enabling market participants to gain exposure to a diversified set of commodities in the bullion market,” Rai added.
The exchange emphasized that options on sectoral indices serve as effective tools for managing price risk.
Published on October 27, 2025.
