- 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.
