DGCX, the Middle East region’s first derivatives exchange, today announced the listing of Dubai India Crude Oil Quanto futures.

 

DGCX listed the Dubai India Crude Oil Quanto Futures (DICO) on July 1. The key benefit of this product is that it allows participants to trade in a Crude Oil futures benchmark referencing the Indian Rupee, whilst trading in US Dollars, a statement said.

 

The structure of DICO futures combines the existing DGCX WTI prices and the flagship Indian Rupee futures contract. With WTI pricing accounting for over 25% of global supply, the DICO futures contract will provide access to the Indian energy markets for a wider range of participants. The contracts genetic makeup embeds the strong fundamentals of trading energy products across global liquidity pools and on DGCX come with the added benefit of intra commodity margin benefits on up to 100 per cent.

 

Gaurang Desai, CEO of the Dubai Gold and Commodities Exchange added: “The development of the contract and the subsequent decision to list it was made following strong demand from our market participants.  The new India Crude oil contract, sized at a tick value of $3, is slightly larger than the mini 100 barrel contract but allows more nimble trading due to its tick size, and therefore, we believe it to be  of significant benefit to our existing and successful energy basket.”

 

 The DICO futures will be cash settled, trading from Monday to Friday during the usual Exchange trading hours (7:00am – 11:55pm).

 

Improvements in Global Single Stock Futures product offering

 

The Exchange also revised the contract specifications of 9 Single Stock Futures (SSFs) which include 6 Indian stocks and 3 US stocks.  The revisions include changes in the contract multiplier which creates an equitable notional value of $5000 and effects cost rationalization across the SSF contracts making the contracts even more appealing across the vibrant retail trading community.

 

DGCX SSFs contracts, comprising of 5 US and 10 Indian stocks, were listed in January 2016 to enable local and regional investors to take advantage of hedging opportunities in global equities while trading locally on a regulated, transparent Exchange.

 

Established in 2005, DGCX is the region’s first derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives.  

 

DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.

–TradeArabia News Service