The UAE's Dubai Gold and Commodities Exchange will roll out two new products, namely a mini-sized WTI futures contract and a India Silver Quanto futures contract, on Friday, the commodity derivatives bourse said Wednesday.
The size of the mini WTI futures is 100 barrels per lot, or a tenth compared with the contract size of 1,000 barrels for the existing cash-settled WTI light sweet crude contract traded on the bourse.
For the India Silver Quanto futures, the contract is sized at 1 index point contract. It is cash settled and denominated in US dollars. DGCX has been offering a similar Indian Gold Quanto futures product.
A quanto is a type of derivative in which the underlying is denominated in one currency, but the instrument itself is settled in another currency at some fixed rate.
The new contracts will be cleared by the Dubai Commodities Clearing Corporation, or DCCC, a wholly owned subsidiary of DGCX.
DGCX said the mini WTI futures contract will provide cross margin benefits to market participants with the existing WTI futures contract and the India Silver Quanto futures contract opens trading opportunities for offshore traders in Indian silver markets.
