Monday, Apr 22, 2013
DUBAI (Zawya Dow Jones)--The Dubai Gold and Commodities Exchange said it has launched a mini Indian Rupee futures contract, one-tenth the size of its existing Indian rupee futures contract, in a bid to make the derivative more flexible and attractive to smaller investors.
"The smaller size of the contract will support retail remitters, individual investors and small and medium-sized businesses in cost-effectively managing currency risk exposure to the Indian Rupee," DGCX said in an emailed statement on Monday.
The new contract is priced at INR200,000 ($3,690) per lot compared to INR2 million per lot for the existing regular rupee contract, the statement said. Apart from its size, the mini contract is similar to the regular contract in all aspects including its daily settlement price, which will be based on the official U.S. dollar reference rate issued by the Reserve Bank of India.
Gary Anderson, the chief executive of DGCX said: "The Mini Indian Rupee futures contract has been designed to meet increasing demand from market participants for a smaller product that allows them to execute trading strategies without making high capital investments."
The mini rupee contract can be cross-margined with the regular DGCX Indian Rupee product offering, the bourse operator said. "This means that any excess margin in an account for one of the Indian Rupee products can be used to cover an account in the other Indian Rupee product that has fallen below the margin requirement."
Write to Brinda Darasha at brinda.darasha@dowjones.com
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(END) Dow Jones Newswires
22-04-13 0943GMT
