Dubai Gold and Commodities Exchange has listed the Dubai India Crude Oil Quanto Futures which will allow participants to trade in a crude oil futures benchmark referencing the Indian Rupee, while trading in US Dollars.
Dubai Gold and Commodities Exchange (DGCX) listed the Dubai India Crude Oil Quanto Futures (DICO) on July 1.
The structure of DICO futures combines the existing DGCX WTI prices and the flagship Indian Rupee futures contract.
With WTI pricing accounting for over 25 per cent of global supply, the DICO futures contract will provide access to the Indian energy markets for a wider range of participants.
The key benefit of this product is that it allows participants to trade in a crude oil futures benchmark referencing the Indian Rupee, while trading in US Dollars.
The contracts genetic makeup embeds the strong fundamentals of trading energy products across global liquidity pools and on DGCX come with the added benefit of intra commodity margin benefits on up to 100 per cent.
“The development of the contract and the subsequent decision to list it was made following strong demand from our market participants,” CEO of DGCX, Gaurang Desai said.
The new India crude oil contract, sized at a tick value of USD 3, is slightly larger than the mini 100 barrel contract but allows more nimble trading due to its tick size, and therefore, we believe it to be of significant benefit to our existing and successful energy basket,” Desai said.
The DICO futures will be cash settled, trading from Monday to Friday during the usual Exchange trading hours (7:00am – 11:55pm).
The exchange also revised the contract specifications of 9 Single Stock Futures (SSFs) which include six Indian stocks and three US stocks.
The revisions include changes in the contract multiplier which creates an equitable notional value of USD 5000 and effects cost rationalisation across the SSF contracts making the contracts even more appealing across the vibrant retail trading community.
DGCX SSFs contracts, comprising of five US and ten Indian stocks, were listed in January 2016 to enable local and regional investors to take advantage of hedging opportunities in global equities while trading locally on a regulated, transparent Exchange.