MCX Stock Exchange (MCX-SX) on Monday said it would introduce trading in derivative contracts on its flagship index, SX40, from next month.

“MCX-SX will introduce trading in futures and options (F&O) on its index SX40 from May 15, 2013,” the exchange said in a statement.

SX40, launched in February, is a free float-based index of 40 large cap and liquid stocks, representing diverse sectors.

The exchange said futures and options on SX40 would be offered in a contract trading cycle of minimum of three contracts having maturity of one month, two months and three months.

Speaking about the development, MCX-SX Managing Director and CEO Joseph Massey said: “SX40 is the true barometer of the Indian economy as it accurately represents its growth potential and dynamism, enabling domestic and global investors to partake in India’s growth story.”

“Further, adoption of Industry Classification Benchmark (ICB), the global company classification standard of the FTSE Group, in its product development efforts will take Indian markets closer to global investors and introduce global best practices in the domestic market. This index is well suited to retail investors, institutional investors, fund houses and global investors,” he added.

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