DGCX To Launch World's First Indian Rupee Futures

by Carla Johnson, Investors Offshore.com

04 June 2007

Colin Griffith, Chairman of the Dubai Gold and Commodities Exchange (DGCX), has announced that on June 7, the DGCX will launch the world’s very first Indian Rupee currency contract.

“The DGCX Indian Rupee contract will for the first time in history enable individuals and companies to have the opportunity to hedge and trade their Indian Rupee risk on the transparent and equal basis that an exchange provides," revealed Griffith.

"To date, the only market available to hedge Rupee risk is the non-deliverable forward (NDF) inter-bank market but that is not accessible to everyone. However the recent strengthening of the Rupee has necessitated the need for an efficient and easily accessible to all, risk management tool which is exactly what this DGCX contract will provide. As the Indian economy continues to grow at record pace; so will the need for this contract," he added.

“The Indian Rupee contract demonstrates again that DGCX is at the forefront of innovation both in the region and globally. DGCX was the first derivatives exchange to go live in the Middle East and this addition to our list of contracts has attracted interest from major financial institutions and corporate across the worlds that are looking to hedge their Rupee risk," observed Griffith.

Each DGCX Indian rupee contract represents two million Rupees. Prices will be quoted in US cents per 100 Indian Rupees, with a minimum price fluctuation of 0.000001 US Dollars per Rupee ($2 per contract). At any point in time, DGCX will list the current and next two calendar months, plus the next three calendar quarterly months.

DGCX was due to hold a mock trading session for all its members on June 2, 2007.

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