• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Kochi, June 3

JRG Securities Ltd has commenced trading in crude oil futures on the Dubai Gold and Commodities Exchange (DGCX).

The recent launch of both WTI and Brent crude oil futures on DGCX is expected to provide access to the world’s two most significant crude oil benchmarks to regional and international market participants, allowing them to benefit from trading and clearing transactions under the UAE regulatory and taxation regimes.

Executing JRG’s first contract on crude oil futures at DGCX, Sheikh Mana Bin Rashid Bin Mana Al Maktoum lauded DGCX for the timely step in launching crude oil futures contracts.

He said it was another first from JRG as the company had taken the quick initiative to launch crude oil contracts for its clients immediately after its debut on DGCX.

The main attraction for investors is that Indian companies with an arm in Dubai can now arbitrage between Mumbai-based MCX and DGCX.

Addressing a press conference in Kochi, the Managing Director of JRG Securities said that the arbitrage opportunities could widen for companies that trade on MCX and have a subsidiary that trades on DGCX not only on the potential price differentials between the two exchanges, but also because of the dollar-rupee exchange rate fluctuations.

JRG has made all arrangements to provide details of DGCX crude oil contracts through all its offices in India and West Asia.

India has a more mature crude futures market with MCX launching crude oil futures way back in 2005.

Crude is now one of the most popular futures contracts on MCX.

The exchange recorded the highest crude oil futures volume of 1,10,496 barrels on May 29.

The JRG Securities Director, Mr Giby Mathew, said that the company will provide mobile trading and multi-lingual Internet trading software at zero cost for the clients trading in crude oil futures on DGCX contracts.

The company plans to charge only a nominal brokerage for the new contracts. JRG already has over 2,000 customers for its DGCX gold futures contracts and averages 7,000-8,000 transactions a day.

More Stories on : Commodity Markets | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SBH farm loan waiver scheme

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line