And now, rupee to trade on Dubai exchange

And now, rupee to trade on Dubai exchange
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First Published: Wed, May 30 2007. 05 02 PM IST
Updated: Wed, May 30 2007. 05 02 PM IST
Dubai: Investors in the Middle East can now trade in Indian currency with the Dubai Gold and Commodity Exchange (DGCX) announcing the launch of world’s first rupee currency contract on 30 May 2007.
DGCX said in a statement here that it would launch trading in the rupee contract on 7 June.
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 transparent and equal basis that an exchange provides, the exchange Chairman Colin Griffith said.
So far, the only market available to hedge rupee risk is the non-deliverable forward inter-bank market but that is not accessible to everyone.
The recent appreciation in the rupee has necessitated the need for an efficient and easily accessible to all, risk management tool, which is exactly what this DGCX contract would provide, it said.
“As the Indian economy continues to grow at record pace; so will the need for this contract,” DGCX said.
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 corporates across the worlds that are looking to hedge their rupee risk, Griffith said.
DGCX had launched trading euro-dollar, yen-dollar and sterling-dollar contracts earlier last year.
Each DGCX Indian rupee contract would represent Rs 20 lakh ($49,300). The prices would be quoted in the US cents per Rs100, with a minimum price fluctuation of $0.000001 per rupee (two dollars 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 would also hold a mock trading session in rupee contract on 2 June.
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First Published: Wed, May 30 2007. 05 02 PM IST
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