The CME Group has announced that it is expanding its currency products offering with the launch of Indian Rupee contracts. The CME is targeting a January 28th launch for the new futures. The product will be traded in two sizes; standard 5 million Rupee contract and e-micro one million rupee future. The contracts will be available for trade on the CME Globex trading platform.
For the CME Group, the exchange will now be offering products for all of the BRIC nation currencies. The role out of more BRIC coverage occurs as the CME has seen demand for these products as their economies have increased their global footprint. On this note, Derek Sammann, CME Group, Senior Managing Director, Interest Rates and FX Products said “With the rapid rise in growth economies like India, there has been an increase in demand for flexible, capital-efficient tools that market participants can access to participate in and act on emerging opportunities.” A similar statement was expressed in September when the CME announced the launch of deliverable renminbi futures. With the launch, the CME will become the second US exchange to offer rupee futures after the ICE introduced the product last month.
CME Group Announces the Expansion of its Currency Product Suite with the Addition of Indian Rupee FX Futures Contracts
New Product Offering Aimed at Providing Global Customers Access into the Fast Growing Indian Market
SINGAPORE, Dec. 18, 2012 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace and the owner of the largest regulated market for foreign exchange, today announced the launch of new foreign exchange (FX) futures contracts based on the Indian Rupee (INR). The target launch date for these contracts is for a trade date of Monday, January 28, 2013. INR futures will be listed on and subject to the rules and regulations of CME, pending regulatory approval.
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The standard-sized contract will have a notional amount of five million rupees, while the e-micro contract will be one-fifth of the size of the standard-sized contract, with a notional amount of one million rupees. Both contracts will trade on CME Globex, will be cash settled at final expiry to the reciprocal of the spot Indian rupee per U.S. dollar exchange rate as determined and published by the Reserve Bank of India, and will feature daily pays and collects calculated and banked in U.S. dollars. The two contract sizes are they designed to offer greater precision for hedging currency risk and enhanced trading flexibility, which includes existing INR offering of OTC USD/INR Non-Deliverable Forward contracts.
“With the rapid rise in growth economies like India, there has been an increase in demand for flexible, capital-efficient tools that market participants can access to participate in and act on emerging opportunities,” said Derek Sammann, CME Group, Senior Managing Director, Interest Rates and FX Products. “Working closely with our customers, CME has developed these rupee contracts to address their needs, and enable participation in the rapid growth of one of the world’s leading emerging markets.”
The launch of the INR/USD futures contracts completes a product suite for trading all BRIC (Brazil, Russia, India, China) currencies under the CME Group organization. As the owner of the world’s largest regulated FX marketplace, CME Group offers a full product suite of 56 futures and 31 options contracts reflecting an average daily notional value of US$110 billion in 2012. In addition, the company provides OTC clearing services for 12 OTC Non-Deliverable Forward currency pairs, as well as 26 Cash Settled Forwards.
To view a video on CME’s new INR/USD FX futures with Derek Sammann, visit: http://www.cmegroup.com/inr.
As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world’s leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.
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