Multi Commodity Exchange of India (MCX) is all set to launch the country’s first bullion index, Bulldex, on August 24.

“MCX iCOMDEX Bullion Index Futures contracts, expiring September, October and November, will be available for trading with effect from August 24,” the commodity exchange said in a circular on Saturday.

The bullion index, Bulldex, being launched by MCX is the sixth product in bullion complex with 1-kg gold, 100-gm goldmini, 8-gm gold guinea and 1-gm gold peta, while the Options on Futures on 1-kg gold is already in place.

The bourse recently launched options on goods in 100-gm goldmini contract.

Having gold and silver as underlying, the Bulldex will have market lot size of 50 and, unlike gold and silver contracts, it will be a cash-settled futures contract, thus making it attractive for hedgers and institutional participants, who are hesitant in taking delivery of gold and silver, a MCX statement said.

As a result, exchange is likely to get more serious participation in the bullion futures that will add depth to the commodity derivatives market.

Also, the rally since mid-March in gold and silver to record highs is also expected to be beneficial for MCX, which had recently witnessed its daily trade volume rising multi-fold due to higher prices and increased volatility in gold and silver.

MCX had tested bullion index futures trade in mock trading exercises in July.

The exchange also has indices on base metals and energy, which will be launched in phased manner after regulatory approvals, the statement said.

On May 25, the Commodity and Derivatives Exchange had launched India’s first index futures contract called Agridex, which has 10 farm commodities as underlying.