DGCX launches 2 pairs of Mini Indian Rupee Futures

The Dubai Gold and Commodities Exchange (DGCX) on Wednesday 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 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 per cent.

This is the first time that DGCX has launched two cross-currency contracts which are quoted in one currency and settled in another.

Gaurang Desai, Interim CEO of DGCX: “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.”

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 Rs400,000 per lot compared to Rs2 million 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 on Monday through Friday from 7am to 11.30pm UAE time.

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