Rupee options trading launched on Dubai comex

Trading in Indian rupee options contracts kicked off on Monday on the Dubai Gold and Commodities Exchange (DGCX), offering members of the bourse added flexibility to hedge and manage rupee risks in a transparent and regulated trading environment.

The launch of the options contract builds on the success of the DGCX Indian rupee futures contracts, which have experienced significant growth in demand over the past year. On September 22, the contract recorded its highest-ever daily trading volume of 34,046 contracts, valued at $1.37 billion, a huge jump from the previous daily high of 27,406 contracts achieved on August 19.

DGCX is the only exchange outside India to offer trading in both futures and options in the Indian rupee. The exchange recently conducted a seminar to educate investors on the modalities of trading in Indian rupee options contracts.

Each DGCX Indian rupee option represents one Indian rupee futures contract worth Rs 2 million. Prices are quoted in US cents per Rs 100, with a minimum premium fluctuation of $0.000001 per rupee ($2 per contract).

Initially, options expiring in October are being offered on the exchange.