Dubai exchange to list India Silver Quanto, Mini WTI Futures

The UAE's leading derivatives bourse, the Dubai Gold & Commodities Exchange (DGCX), will launch an India Silver Quanto futures contract and a mini sized WTI futures contract.
The contracts are set to be listed for trading tomorrow and will be cleared by the Dubai Commodities Clearing Corporation (DCCC), a wholly-owned subsidiary of DGCX.
DGCX India Silver Quanto Futures contract will provide an opportunity to take price view and trading opportunities for offshore traders on Indian silver markets - the second biggest silver consuming countries in the world.
The new contract will trade before and after the closure of the Indian markets, which offers traders increased trading opportunities. The contract will be cash settled, denominated in US dollars, and sized at 1 index point.

"The concept of Quanto futures is very simple and helps market participants manage currency exposures effectively, and we are delighted to play a pioneering role in the introduction of such unique derivative products in this region.
"Our India Silver quanto contract will offer great benefits to DGCX market participants, primarily by offering them immunity from exchange rate fluctuations. Furthermore, our market participants can also benefit from the margin offsets provided by DCCC for inter-commodity spreads," DGCX CEO Gaurang Desai said.

"The India Silver Quanto will expand the value proposition of our Indian product suite and take us to the next level in terms of hybrid silver capabilities," he said.

The addition of a Mini sized WTI contract will further strengthen DGCX's hydrocarbon product portfolio. The Mini WTI contract sized at 100 barrels will be ideal for greater control of risk exposure and also provide market participants cross margin benefits with the Exchange's existing WTI futures contract.
With production accounting for over 10 per cent of global demand, and pricing accounting for over 25 per cent of global supply, the WTI is known as one of the premier oil benchmarks in the world.
"Our WTI futures contract has gained traction among investors especially now with the increased volatility in oil markets. The Mini WTI contract will enable price discovery for many new market participants, offering protection and hedging opportunities to all," he said.