Dubai Gold & Commodities Exchange's total Indian Rupee futures volume rose 530 per cent in 2009 to 66,346 contracts.

Volume in December 2009 was 346 per cent higher compared with the same period last year, according to the DGCX statement.

Demonstrating increased demand for its Indian Rupee futures contract, the Exchange said that Open Interest in the contract stood at a record 807 lots as at close of business on January 12.

The Open Interest, contracts which roll over to the next trading session, reflects the build up of hedging participation and ongoing momentum in the product. The trend is also supported by the rise in annual volumes of DGCX Indian Rupee/Dollar futures.

“The record Open Interest and sustained volume sets the tone for the product’s growth this year,” said Eric Hasham, chief executive of DGCX.

“The Indian Rupee contract is an important driver of the Exchange’s currency portfolio, having gained favour with many market participants. The changes to the contract in 2008, based on member feedback, led the contract to a new level of growth.”

“The contract is now cash settled based on the US Dollar reference rate published by the Reserve Bank of India, providing transparency and facilitating settlement for all participants. We anticipate further interest in the contract, backed by participants’ better understanding of its benefits and India’s strong economic prospects,” he added.

The DGCX Indian Rupee/Dollar futures contract is the only contract of its kind outside of India and thus available to international participants.-TradeArabia News Service