Monday 13, November 2017 by Jessica Combes

DGCX adds 44 blue-chip Indian Single Stock Futures to its Equities Portfolio

 

The Dubai Gold & Commodities Exchange (DGCX), having received regulatory approval, today announced the launch of an additional 44 blue-chip Indian Single Stock Futures (SSF), further expanding its equities asset class vertical.

With the listing of additional Indian SSFs, local and regional traders can now participate in the price performance of numerous stocks that fall within the major indices in India. Additional SSFs will be listed for trading on the Exchange from 8 December 2017.

DGCX Indian SSFs mirror the price of selected underlying Indian stocks, providing traders and investors with the ability to replicate price performance for their usual equity trading strategies with the advantages of futures products and centralised clearing. This provides the added benefit of access to Indian equities with the familiarity of cash settlement, appealing to market participants from the professional and retail community.

The Exchange’s Indian SSFs witnessed strong growth from July to the end of October 2017, trading a total of 851,108 contracts, up ten-fold from 2016, with a value of USD$ 5.42 billion. In October, the average daily volume was 10,750 lots valued at USD 64 million per day, with Open Interest of 2,042 lots.

“We’ve seen volume growing strongly in our Indian SSF throughout 2017, which further encouraged us to add whole range of Indian SSFs in our Equity portfolio. The new Indian SSF will continue be traded and settled in USD beyond Indian market hours and comes without any foreign exchange risk, in a tax-free ecosystem,” said Gaurang Desai, CEO of the Dubai Gold and Commodities Exchange (DGCX).

Some of the new additions include Hindustan Unilever, Tata Motors, Tata Steel, Wipro, Hindustan Petroleum Corporation, HCL Technologies, Bank of Baroda, Bosch Ltd, Zee Entertainment Enterprises Ltd and Indian Oil Corporation Ltd.

Providing our members and traders with access to participate in the growth and price performance of Indian blue-chip companies through our own platform is unique in the international markets, and in line with our commitment to be pioneers in the growth of the regional derivatives industry while growing our Equities asset class vertical. Our endeavour is to meet the investment and hedging needs of a broader range of market participants in the region as well as worldwide, and in keeping with that goal, we will continue to expand the breadth and depth of our product range,” said Desai.