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NCDEX to launch Futures Contract on AGRIDEX | NCDEX launches futures contract on Agradex, trading to begin on May 26

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NCDEX to launch Futures Contract on AGRIDEX

new Delhi. India's leading agricultural commodity derivatives exchange NCDEX has announced the commencement of trading in the country's first Agri Futures Index Agradex. NCDEX stated that trading would commence from May 26 for the NCDEX Agradex Futures contract ending in June, July, September and December.

Vijay Kumar, MD and CEO, NCDEX, said that the Indian economy is heavily agricultural and contributes significantly to employment and economic growth. NCDEX has always played an important role in risk management in the Indian agricultural value chain. Starting Agradex Futures is a next step in that direction. He said that Agradex Futures Contract will provide investors with another medium for trading and risk management at the convener level.

Agradex is a return based index made up of ten highly liquid agricultural commodities sold on NCDEX. Without dominance in any single commodity or sector index, Agradex has floors and caps based on the commodity and sector. Agradex has little connection with other asset classes and indices. To ensure diversity, no commodity affiliate group in the index will hold a weightage of more than 40 percent.

The rollover will be done in the first 3 days of the closing month and indexes will be rebalanced on an annual basis on the first business day of April. The floor and cup will be applied to the weight of each commodity. Agradex is a comprehensive agricultural commodities index that provides holistic scenarios to this segment.

Kapil Dev, business head of NCDEX said that futures on Agradex is a significant addition to agricultural derivatives products on NCDEX and is the first selling commodity index based on Indian domestic prices. Agradex Futures Contract provides diversified cash settlement instruments, which will help both institutional and retail investors to expand their participation on the exchange.

NCDEX has partnered with leading index service provider NSE Indices to maintain and disseminate real-time NCDEX Agradex values.

This post was published on May 20, 2020 9:55 pm

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