The Dubai Gold and Commodities Exchange (DGCX) has launched two Futures contracts based on the MSCI India Index, further expanding its equity suite and its emerging market portfolio.
One contract is based on the MSCI India Price Return Index, which takes into account only the price performance of constituent stocks in local currency (Indian Rupee) while the other is based on the MSCI India Total Return Index, which takes into account both the price performance and the dividend payments and is calculated in US dollar terms.
The new contracts, which went live on October 17, are being cleared by the Dubai Commodities Clearing Corporation (DCCC).
The MSCI India Index represents 67 locally listed entities in India and covers approximately 85 per cent of the investable Indian equity market universe. The MSCI India Index is designed to measure the performance of large and mid-cap segments of the Indian market.
DGCX MSCI India futures offer DGCX members, including global FCMs, banks, asset managers, professional traders, and foreign institutional investors the opportunity to participate in the performance of the Indian equities.
DGCX's product suite already covers a diverse range of sectors including metals, currencies, hydrocarbon and equities. This includes DGCX S&P BSE Sensex Futures which is the first Indian equity index futures to be listed in the region.
"The contracts are part of a planned expansion of our Emerging Market product offering, and are specifically designed to cater to the investment requirements of regional and international participants seeking exposure to one of the world's largest and fastest growing Emerging Markets, India. The DGCX MSCI India futures trade alongside DGCX's flagship INR FX contract and provide international investors with the tools to replicate their macro India trading mandates," Gaurang Desai, Interim CEO, DGCX, said.
"We are extremely excited to work with the DGCX in further expanding our global derivatives licensing footprint in the fast growing MENA region," said Ricardo Manrique, Executive Director and Global Head of Derivatives Licensing at MSCI.
