Exchange strengthens its precious metals suite with the launch of India Silver Quanto futures contract
The introduction of a mini sized WTI contract will further expand DGCX's hydrocarbon segment
UAE's leading derivatives bourse, the Dubai Gold & Commodities Exchange (DGCX) today announced the launch of an India Silver Quanto futures contract and a mini sized WTI futures contract. The contracts are set to be listed for trading on Friday, October 9, and will be cleared by the Dubai Commodities Clearing Corporation (DCCC), a wholly owned subsidiary of DGCX.
Gaurang Desai, CEO of DGCX, said: "As highlighted before, the concept of Quanto futures is very simple and helps market participants manage currency exposures effectively, and we are delighted to play a pioneering role in the introduction of such unique derivative products in this region. Our India Silver quanto contract will offer great benefits to DGCX market participants, primarily by offering them immunity from exchange rate fluctuations apart from providing significant arbitrage opportunities. Furthermore, our market participants can also benefit from the margin offsets provided by DCCC for inter-commodity spreads."
DGCX India Silver Quanto Futures contract will provide an opportunity to take price view and trading opportunities for offshore traders on Indian silver markets - the second biggest silver consuming countries in the world. The new contract will trade before and after the closure of the Indian markets, which offers traders increased trading opportunities. The contract will be cash settled, denominated in US dollars, and sized at 1 index point.
"The India Silver Quanto will expand the value proposition of our Indian product suite and take us to the next level in terms of hybrid silver capabilities," added Gaurang.
The addition of a Mini sized WTI contract will further strengthen DGCX's hydrocarbon product portfolio. The Mini WTI contract sized at 100 barrels will be ideal for greater control of risk exposure and also provide market participants cross margin benefits with the Exchange's existing WTI futures contract.
With production accounting for over 10% of global demand, and pricing accounting for over 25% of global supply, the WTI is known as one of the premier oil benchmarks in the world.
"Our WTI futures contract has gained traction among investors especially now with the increased volatility in oil markets.
Therefore, the introduction of a Mini sized WTI contract is a logical step to ensure our participants have greater accessibility to the energy markets. The Mini WTI contract will enable price discovery for many new market participants, offering protection and hedging opportunities to all," concluded Gaurang.
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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 majority owned by 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.
For more information: www.dgcx.ae
© Press Release 2015
