Dubai bourse to launch Sensex futures on July 5

Dubai Gold & Commodities Exchange (DGCX), partly owned by Financial Technologies and Multi Commodity Exchange (MCX), will launch futures contracts of the BSE Sensex on July 5. According to a DGCX release, these would be the first Indian index contracts to be launched in West Asia.

The contracts would be denominated in US dollars, DGCX said, adding, “Once listed, DGCX Sensex futures would provide unique trading opportunities for international investors seeking access to India’s economy.” Market participants said the listing of Sensex futures on DGCX would provide non-resident Indians exposure to Indian shares at low costs. In West Asian markets, the demand for Indian equities was robust, they added.

While Sensex futures are already traded on bourses in the US and Europe, National Stock Exchange’s Nifty futures are traded in the Singapore and US markets.

DGCX started trading in November 2005; it trades in currency, metals and commodities such as crude oil. Rupee futures contracts are also traded on DGCX. Today, the exchange said it planned to launch contracts on the MSCI India Index Futures in the near future.

According to the DGCX website, Jignesh Shah, chairman and group chief executive of Financial Technologies and a member of the DGCX board, is also its vice-chairman. Joseph Massey, managing director and chief executive of MCX-SX, is director of DGCX.

The Financial Technologies group owns commodity exchange MCX, as well as MCX-SX, the stock exchange launched early this year.