Dubai Gold and Commodities Exchange (DGCX) has launched two futures contracts based on the MSCI India Index, further expanding its equity suite and emerging market portfolio.

One contract is based on the MSCI India Price Return Index, which takes into account only the price performance of constituent stocks in local currency (Indian Rupee), said a statement.

The other is based on the MSCI India Total Return Index, which takes into account both the price performance and the dividend payments and is calculated in US Dollar terms, it said.

The new contracts, which went live on October 17, are being cleared by the Dubai Commodities Clearing Corporation (DCCC).

The MSCI India Index represents 67 locally listed entities in India and covers approximately 85 per cent of the investable Indian equity market universe. It has been designed to measure the performance of large and mid-cap segments of the Indian market.

DGCX MSCI India futures offer DGCX members, including global FCMs, banks, asset managers, professional traders, and foreign institutional investors the opportunity to participate in the performance of the Indian equities.

Gaurang Desai, interim chief executive officer of DGCX, said: “The contracts are part of a planned expansion of our Emerging Market product offering, and are specifically designed to cater to the investment requirements of regional and international participants seeking exposure to one of the world’s largest and fastest growing Emerging Markets, India.

“The DGCX MSCI India futures trade alongside DGCX’s flagship INR FX contract and provide international investors with the tools to replicate their macro India trading mandates.”

“We are amidst an intense regulatory shift towards CCP cleared derivative contracts that aim to minimize the systemic risk of OTC traded derivatives. The DCCC cleared DGCX MSCI India futures will provide global investors with an alternative to the highly popular MSCI India Swaps traded on the OTC market.” Desai added.

Ricardo Manrique, executive director and global head of derivative at MSCI, said: “We are extremely excited to work with the DGCX in further expanding our global derivatives licensing footprint in the fast growing Mena region.

“This is yet another important step in the global expansion of our strategic relationships with derivatives exchanges that enables them to provide investors that are benchmarked to MSCI indexes with tools to help them manage their portfolios effectively and efficiently.” - TradeArabia News Service