DGCX to list contract in Indian currency in mid-June

Dubai, April 13 (UNI) Dubai Gold and Commodities Exchange (DGCX) will list a future's contract on the Indian rupee in mid-June, making it the first exchange in the world to trade a rupee derivative, an official said.

DGCX already trades in three currency contracts of euro/dollar, pound sterling/dollar and Japanese yen/dollar in addition commodities futures contracts gold, silver and fuel oil.

''The DGCX rupee contract can be viewed as a natural extension of the non-deliverable forward (NDF) inter-bank market that already exists in various financial centres,'' a statement by DGCX Chairman and Executive Director of the DMCC Colin Griffith said.

''The DGCX futures market does, however, have advantages over the NDF market, such as transparency of price discovery and the benefits of centrally cleared market positions,'' he said.

The rupee contracts will be non deliverable in rupees while the settlements will be done in dollars.

''The purpose of this contract is efficient price discovery rather than actual delivery based settlements. Rupee futures contract will be of use to traders banks and remittance agencies,'' said Griffith.

Each DGCX Indian rupee contract represents Rs 2 million. Prices will be quoted in US cents per Rs 100, with a minimum price fluctuation of 0.000001 dollar per Re 1 (2 dollars per contract).

At any point in time DGCX will list the current and next two calendar months, plus the next calendar quarterly month. Further delivery months will be added as market liquidity grows, it said.

DGCX was the first futures exchange in the West Asia, and it currency contracts were the first exchange-traded currencies in the region.

UNI