Kochi: JRG Securities Ltd has commenced trading in crude oil futures on the Dubai Gold and Commodities Exchange (DGCX).
The recent launch of both WTI and Brent crude oil futures on DGCX is expected to provide access to the world’s two most significant crude oil benchmarks to regional and international market participants, allowing them to benefit from trading and clearing transactions under the UAE regulatory and taxation regimes.
JRG’s first contract
Executing JRG’s first contract on crude oil futures at DGCX, Sheikh Mana Bin Rashid Bin Mana Al Maktoum lauded DGCX for the timely step in launching crude oil futures contracts.
He said it was another first from JRG as the company had taken the quick initiative to launch crude oil contracts for its clients immediately after its debut on DGCX.
The main attraction for investors is that Indian companies with an arm in Dubai can now arbitrage between Mumbai-based MCX and DGCX.
Arbitrage opportunities
Addressing a press conference in Kochi, the Managing Director of JRG Securities said that the arbitrage opportunities could widen for companies that trade on MCX and have a subsidiary that trades on DGCX not only on the potential price differentials between the two exchanges, but also because of the dollar-rupee exchange rate fluctuations.
JRG has made all arrangements to provide details of DGCX crude oil contracts through all its offices in India and West Asia.
India has a more mature crude futures market with MCX launching crude oil futures way back in 2005.
Crude is now one of the most popular futures contracts on MCX.
Highest record
The exchange recorded the highest crude oil futures volume of 1,10,496 barrels on May 29.
The JRG Securities Director, Giby Mathew, said that the company will provide mobile trading and multi-lingual internet trading software at zero cost for the clients trading in crude oil futures on DGCX contracts.
New contracts
The company plans to charge only a nominal brokerage for the new contracts. JRG already has over 2,000 customers for its DGCX gold futures contracts and averages 7,000-8,000 transactions a day.
The recent launch of both WTI and Brent crude oil futures on DGCX is expected to provide access to the world’s two most significant crude oil benchmarks to regional and international market participants, allowing them to benefit from trading and clearing transactions under the UAE regulatory and taxation regimes.
JRG’s first contract
Executing JRG’s first contract on crude oil futures at DGCX, Sheikh Mana Bin Rashid Bin Mana Al Maktoum lauded DGCX for the timely step in launching crude oil futures contracts.
He said it was another first from JRG as the company had taken the quick initiative to launch crude oil contracts for its clients immediately after its debut on DGCX.
The main attraction for investors is that Indian companies with an arm in Dubai can now arbitrage between Mumbai-based MCX and DGCX.
Arbitrage opportunities
Addressing a press conference in Kochi, the Managing Director of JRG Securities said that the arbitrage opportunities could widen for companies that trade on MCX and have a subsidiary that trades on DGCX not only on the potential price differentials between the two exchanges, but also because of the dollar-rupee exchange rate fluctuations.
JRG has made all arrangements to provide details of DGCX crude oil contracts through all its offices in India and West Asia.
India has a more mature crude futures market with MCX launching crude oil futures way back in 2005.
Crude is now one of the most popular futures contracts on MCX.
Highest record
The exchange recorded the highest crude oil futures volume of 1,10,496 barrels on May 29.
The JRG Securities Director, Giby Mathew, said that the company will provide mobile trading and multi-lingual internet trading software at zero cost for the clients trading in crude oil futures on DGCX contracts.
New contracts
The company plans to charge only a nominal brokerage for the new contracts. JRG already has over 2,000 customers for its DGCX gold futures contracts and averages 7,000-8,000 transactions a day.
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