MCX-SX to introduce trading in F&O on SX40 from May 15

MCX Stock Exchange (MCX-SX) will introduce trading in futures and options on its flagship index SX40 from May 15, 2013. SX40 is a free float-based index of 40 large cap and liquid stocks, representing diverse sectors of the economy.

Index Futures and Options on SX40 will be available for trading from 9:15 am to 3:30 pm from Monday to Friday. Index Futures on SX40 will have a tick size of Rs 0.05 and will be offered in a contract trading cycle of minimum of three contracts of maturity of one-month, two-month and three-month, which would be introduced simultaneously.

Index Options on SX40 will also have a tick size of Rs 0.05 and a monthly trading cycle of 3 serial monthly expiry contracts.

SX40 uses a capping methodology, which is used for capping exposure of a specific sector and industry classification of scrips included in the index.  This cap is set at 20%, reduces the industry bias and ensures better industry representation of the underlying market.