The Dubai Gold and Commodities Exchange (DGCX) is set to expand its Indian rupee (INR) product offerings with the launch of an INR options contract on September 26.

The contract will be the only exchange-traded INR options product offered to markets outside India.

“The provision of an Indian rupee options contract will enable us to build on the exceptional volume growth achieved by our Indian rupee futures contract over the last 12 months and meet the member demand to further strengthen our INR offering,” the DGCX CEO, Mr Eric Hasham, has said in a statement.

“DGCX has been working closely with its members and market participants to develop this additional risk management tool. The new options contract is the result of this interaction and feedback process. Our unique new Indian rupee options contracts will provide our members with more flexibility to hedge risk and trade in the Indian rupee in a transparent, regulated and cleared trading environment,” he said.

Each DGCX Indian rupee options contract represents 2 million rupees.

Prices will be quoted in US cents per 100 Indian rupee with a minimum premium fluctuation of 0.000001 US dollar per rupee ($2 per contract). At launch, the October 2011 expiry month will be available to trade.

DGCX will hold workshops on the INR options contract prior to its launch on September 26. The dates of these workshops will be announced in due course.

Established in 2005, DGCX is the region’s first derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region.

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