Building on the success of its portfolio of Indian Rupee (INR) product suite, the Dubai Gold & Commodities Exchange (DGCX) will be launching a Weekly INR-US Dollar (USD) Futures Contract. The new contract will go live on Friday, 10th July 2020.
The DGCX’s INR product suite includes its flagship Monthly INR Futures, INR Options, INR Quanto Futures, and Mini INR Futures Contracts. The new Weekly INR Futures Contract will add further diversification, providing market participants with short-term hedging and arbitrage opportunities, while tracking the world’s largest pool of offshore liquidity for exchange-traded INR-USD currency products that the DGCX offers.
Les Male, CEO of DGCX, said: “The successful performance of the DGCX’s INR portfolio has paved the way for the launch of this new contract, which signals our intent to give our members products that are innovative and add true value. We see this Weekly Contract being particularly beneficial for corporates and market participants looking for short-term contracts which can match their business and hedging requirements. Furthermore, the weekly nature of this product can offer our members enhanced capital efficiencies through margin offsets available for our existing suite of monthly INR-USD currency contracts. This move significantly strengthens our value proposition across our INR portfolio, providing market participants with greater flexibility to hedge their risk on a globally recognized, regulated exchange and clearing house.”
The new Weekly INR Futures Contract will be priced in USD and denominated in amounts of 2,000,000 of the base currency (INR). The Contract expires every Friday (except where that coincides with the expiry of the standard Monthly INR/US Dollar Futures Contract). Block trading will be permissible in the contract and inter-commodity spread margin offsets are available for the DGCX’s other INR products.
All trades in the new contracts will be cleared by the DGCX’s wholly-owned and regulated clearing house, the Dubai Commodities Clearing Corporation (DCCC). DCCC is regulated and licensed by the Securities & Commodities Authority (SCA) as a Central Clearing Counterparty (CCP), and is also recognised by the European Securities and Markets Authority (ESMA), the regulatory body for the EU. Last month, the DGCX received a positive assessment from ESMA and is now listed as a third-country trading venue (TCTV) that meets the post-trade transparency requirements under MiFID II and MiFIR.
The DGCX continues to provide investors with a wide range of derivative products that allow them to manage their risk effectively. The imminent launch of the Weekly INR Futures Contract follows the successful launch of three FX Rolling Futures Contracts earlier this week – Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD) against the US Dollar (USD).