DGCX to launch India Silver Quanto, Mini WTI futures
DUBAI, October 8, 2015
The Dubai Gold & Commodities Exchange (DGCX), UAE's leading derivatives bourse, is set to launch an India Silver Quantro futures contract and a mini-sized WTI futures contract.
The contracts are set to be listed for trading on October 9, and will be cleared by the Dubai Commodities Clearing Corporation (DCCC), a wholly-owned subsidiary of DGCX, said a statement.
Gaurang Desai, chief executive officer, 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.”
The new contract will provide an opportunity to take price views and trading opportunities for offshore traders on Indian silver markets – the second biggest silver consuming countries in the world.
It 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 one 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,” said Gaurang.
The addition of a mini-sized WTI contract will further strengthen DGCX’s hydrocarbon product portfolio, said the statement.
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, it said.
With production accounting for more than 10 per cent of global demand, and pricing accounting for more than 25 per cent 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," said Gaurang.
"The Mini WTI contract will enable price discovery for many new market participants, offering protection and hedging opportunities to all,” he added. - TradeArabia News Service
