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Gold July 10, 2020 04:00:51 PM

Dubai Gold and Commodities Exchange to Launch Weekly INR Futures Contract

Paul Ploumis
ScrapMonster Author
The new futures contract will be priced in US dollar, and denominated in amounts of 2,000,000 of the base currency, which is the Indian rupee.

Dubai Gold and Commodities Exchange to Launch Weekly INR Futures Contract

SEATTLE (Scrap Monster): The Dubai Gold and Commodities Exchange is set to expand its INR product suite with the launch of weekly INR futures contract. The new INR-US Dollar (USD) Futures Contract will be launched today, Friday, 10th July, 2020. This will add further diversification to the exchange’s product portfolio, offering enhanced short-term hedging and arbitrage opportunities for market participants.

The new futures contract will be priced in US dollar, and denominated in amounts of 2,000,000 of the base currency, which is the Indian rupee. Contrary to the existing INR/US dollar futures contract, which expires every month, the new contract will expire every week. Accordingly, the contract will expire on Friday of every week. Block trading is allowed, said the DGCX press release.

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All trades in the new contract will be cleared by the Dubai Commodities Clearing Corporation (DCCC) - the wholly owned and regulated clearing house facility of the exchange.

Commenting on the development, Les Male, CEO, DGCX noted that the launch of the new contract is primarily inspired by the successful performance of its INR portfolio. The weekly contracts will be particularly beneficial for corporate and other market participants who are interested in short-term contracts, he added.

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