MCX launches bullion index options for diversified hedging

The Multi Commodity Exchange of India (MCX) announced the launch of monthly options contracts on the MCX ICOMDEX Bullion Index (MCX BULLDEX®), effective October 27, 2025. These new contracts are designed to provide market participants with a versatile risk management tool, offering exposure to a diversified basket of bullion assets, including MCX Gold and Silver Futures contracts. The exchange states this product will cater to both investors and institutions seeking investment and hedging solutions.

MCX's decision aligns with its strategy to deepen India's commodity markets through product innovation and enhanced transparency. Options on indices are popular investment tools, and the MCX BULLDEX® is deemed suitable for sectoral price risk management, adhering to IOSCO Principles for Financial Benchmarks.

According to praveena rai, md & ceo, MCX, the introduction of options on MCX BULLDEX® represents a pivotal development, enhancing the range of products in India's commodity derivatives ecosystem. MCX held approximately 98% of the market share in commodity futures contracts by value in the financial year 2024-25.