The Hindu Business Line : JRG Securities announces rupee contracts on DGCX

Hedging Opportunity
DGCX will be the first exchange in the world to trade a rupee derivative
The company has set up trading infrastructure in the West Asian offices for trading in Rupee contracts.

Kochi June 8 JRG Securities has announced the launch of futures trading in Indian rupee contracts at the Dubai Gold and Commodity Exchange (DGCX). Mr Regi Jacob, Managing Director, JRG Securities, said that all rupee contracts would be undertaken by its subsidiary, JRG Metals and Commodities.

Mr Sudhir Kumar Shetty, Chief Operating Officer and General Manager of the UAE Exchange, inaugurated the first trade on the JRG platform in Indian Rupee futures contracts in Abu Dhabi.

Currency Contracts

DGCX listed the futures contract in Indian rupee on Thursday. This will be the first time that Indian rupee is going to be traded in the global futures market and DGCX will be the first exchange in the world to trade a rupee derivative. Trades are already in vogue in three currency contracts such as euro/US dollar, pound sterling/US dollar and Japanese yen/US dollar, a press release issued here has said.

Mr Jacob said that the company has set up trading infrastructure in the West Asian offices to provide the global investors an opportunity to trade in Indian rupee contracts. "Investors can trade through the Internet, Mobile and Indoor Trading Terminals in the JRG offices in West Asia," Mr Jacob said.

Price Fluctuation

He said the Indian rupee contract would provide individuals and companies the opportunity to hedge and trade their Indian rupee risk in a transparent and equal basis that the exchange provides. JRG made has made all the arrangements to provide the details of Indian rupee contract through its 510 branches across India and in West Asia.

Each DGCX Indian rupee contract represents Rs 20 lakh. Prices will be quoted in US cents per Rs 100, 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.

Daily variation margin (mark-to-market) is payable by each member holding open position till expiration date. Open positions at expiry of contract shall be settled in US dollars as per Daily Settlement Price (DSP) declared by the Exchange.

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