With Dubai GCX to tap global traders

SINGAPORE: India International Exchange, being set up by the Bombay Stock Exchange (BSE), has worked out a collaboration with Dubai Gold and Commodity Exchange to reach out to global traders, officials said on Wednesday.

Prime Minister Narendra Modi will inaugurate BSE'S India International Exchange (INDIAINX) at GIFT-CITY near Gandhinagar on January 9 on the occasion of Vibrant Gujarat Global Summit-2017.

INDIAINX has also worked out an agreement with Dubai Gold and Commodity Exchange (DGCX) to reach out to the global traders in a wide range of products including the trading in INR-USD contract.

“We are pleased to announce the tie up with DGCX to mutually, on reciprocal basis, exchange our price feed and product licence agreements,” BSE'S Chief Business Officer V Balasubramaniam said at the FIA Asia Derivative Conference being held here from December 6-8.

DGCX trades BSE'S SENSEX.

“Now we are looking at expanding the corporation to more products including currencies, commodities, derivatives and others,” Balasubramaniam said.

DGCX chief executive officer Gaurang Desai said, “We will be jointly developing new products and do joint business development.” DGCX is now the largest Rupee-dollar (INRUSD) market, averagely trading USD 2 billion a day.

“We also have largest open interest globally, about USD 8 billion, four times of our daily volume of INR-USD,” said Desai.

“We are now going to look at much bigger ambition in trading from INDIAINX,” said Balasubramaniam.

INDIAINX will offer derivative exchange in rupee-dollar contracts, products on gold, silver, copper and crude oil such as the West Texas Intermediate and Brent contracts, two of the leading contracts in oil trading. “We are going to look at launching single stock futures on Indian and international companies,” said Balasubramaniam.

DGCX is already trading 10 Indian and 5 US stock futures contracts, said Desai, supporting the INDIAINX plans.