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Dubai bourse may launch Sensex futures by early July

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Sneha Padiyath Mumbai
Last Updated : Jun 13 2013 | 10:45 PM IST
The Dubai Gold & Commodities Exchange (DGCX), part-owned by Financial Technologies (FT) and the Multi Commodity Exchange (MCX), is set to launch futures contracts of the BSE's benchmark Sensex.

The index futures will most likely be available for trading in Dubai in the first week of July, according to a source in the know. A DGCX spokesperson said the exchange would not comment on new products under consideration until these were ready to be launched.

"DGCX is planning on developing a Sensex futures contract as part of expanding its emerging market product portfolio. This is part of our larger strategy of developing a strong offshore platform for the trading of a range of emerging market contracts in response to member and market needs," the spokesperson added. "We will keep the market fully informed when DGCX is ready to launch Sensex futures."

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Sensex futures are already traded on bourses in the US and Europe. Its rival, the National Stock Exchange's Nifty, is traded in the US Singapore.

According to market participants, a Sensex futures' listing on the DGCX will give non-resident Indians an exposure to Indian shares at a lower cost. The demand in these markets for Indian equities is robust, they said.

DGCX started trading in November 2005 and trades in currency, metals and commodities, such as crude oil. Rupee futures contracts are also traded on the DGCX.

Jignesh Shah, chairman and Group CEO of FT, is also on the board of directors of DGCX and is vice-chairman of the exchange, according to the DGCX website.

Joseph Massey, who serves as the managing director and CEO of MCX-SX, is the director of DGCX.

The FT Group is also the owner of MCX, the commodity exchange, and MCX-SX, the stock exchange, launched earlier this year.


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First Published: Jun 13 2013 | 10:45 PM IST

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