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DGCX Launches Two New Pairs Of Mini Indian Rupee Futures

Gaurang Desai, Interim CEO, DGCX -

Gaurang Desai, Interim CEO, DGCX -

Further building on the success of its Indian product suite, the Dubai Gold and Commodities Exchange (DGCX) on 29 October announced the launch of two new pairs of Mini Indian Rupee (INR) futures contracts denominated in British Pound (INRGBP) and Euro (INREUR) respectively. The new contracts, which went live on October, 26, 2014, will be cleared by the Dubai Commodities Clearing Corporation (DCCC).

The first of its kind to be listed for trading in the region, the new mini sized Indian Rupee Futures contracts will complement DGCX’s existing Indian Rupee product portfolio, which includes the flagship Indian Rupee Futures, Indian Rupee Options and the Mini Indian Rupee Futures (DINRM). DGCX is a significant reference market for exchange-traded Indian Rupee contracts with a market share of more than 35%.

This is the first time that DGCX has launched two cross-currency contracts which are quoted in one currency and settled in another. The Multi FX capabilities of DGCX’s advanced trading infrastructure, the EOS platform, makes it possible for the Exchange to seamlessly facilitate the trading of such innovative currency products.

Gaurang Desai, Interim CEO of DGCX: “Launching two cross-currency contracts demonstrates DGCX’s forward thinking strategy and robust product innovation. While the MSCI Futures contracts launched last week were designed for an institutional investor base, these two products of Mini Indian Rupee Futures primarily have a retail focus. We are keen to ensure that our product portfolio has the diversity necessary to service both sides of the customer spectrum. The new mini sized contracts will further strengthen our Indian product offering while offering immense value to retail participants who are seeking to hedge against global currency volatility.”

DGCX INRGBP Mini Futures contract is quoted in British Pounds while DGCX INREUR Mini Futures contract is denominated in Euros. Both the contracts are cash settled in US Dollars.

The new contracts are priced at 400,000 Rupees per lot compared to 2 million rupees per lot for the existing regular DGCX Indian Rupee contract. The smaller size of these contracts will encourage retail participants, individual investors and small and medium-sized businesses (SMEs) to cost-effectively manage their price risk and exposure to Euro and British Pound volatility versus the Indian Rupee. The new contracts will also offer new arbitrage opportunities.

Prices for INRGBP Mini Futures and INREUR Mini Futures are quoted in GBP Pence per 100 Indian Rupees and EUR Cents per 100 Indian Rupees respectively. Both the contracts can be traded Monday through Friday from 7.00 AM to 11.30 PM UAE time.

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