Dubai India Crude Oil (DICO) will allow participants to trade in a Crude Oil futures benchmark referencing the Indian Rupee, whilst trading in US Dollars. The use of DICO as a reference pricing mechanism extends far beyond its local and regional markets. The product design of DICO brings together both the DGCX WTI prices and the flagship USDINR contract. With WTI pricing accounting for over 25% of global supply, the DICO futures contract provides accessibility to the Indian energy markets to a wider range of participants.
Paired with the DGCX’s existing INR currency suite and WTI offerings, the DICO futures contract draws a stronger appeal to existing contracts on other exchanges which are of a differing size. The DICO contract will help facilitate price discovery by new and existing market participants, offering protection and hedging opportunities to an increasingly motivated trading community.
- Trade your views, tax free on an Indian Rupee linked benchmark to the international Crude Oil market
- Arbitrage opportunity with global commodity exchanges as well as existing Energy contracts
- Low cost structure with additional margin credit against the major DGCX WTI and Mini WTI Futures contracts
- Greater access to international energy markets with clear, understandable rules, regulations and contract specifications
- Unique trading opportunity in the region to participate in global oil markets
- Unique contract size that can be compared as a ratio to other global exchanges
- Indian Rupee based, USD denominated, cash settled with a tick size of USD $3
- Tax Free – No transaction Tax and Zero Capital Gains tax
- Traded on a secure regulated marketplace permitting global participation
- Market hours encompassing the largest global liquidity pools
- Market hours from 7.00 AM till 11.55 AM UAE time
- Overlaps most trading zones including Europe and United States
Contract Parameters Contract Symbol DICO Underlying Indian Crude Oil Contract Contract Size 3 Notional Contract Value USD 3.00 X Indian Crude Oil Futures Price quoted (e.g. Bid 3307.00 / Ask 3308.00) Trading Currency USD Settlement Currency USD Price Quote USD Tick Size 1 Tick Value USD 3 Settlement Basis Cash Only Settlement Contract Final Cash Settlement Price The Final Cash Settlement Price basis shall be the DGCX front month WTI Light Crude Oil Final Settlement price that corresponds to the DGCX front month DICO contract. Official US Dollar reference rate issued by the Reserve Bank of India (RBI), based on bank rates in Mumbai at 12 noon on the Last Day of Trading or earliest available date shall be used to convert the above DGCX front month DWTI Final Settlement Price into DGCX front month DICO Final Settlement Price. For instance, on the Last Day of Trading of DICO front month contract, the Final settlement price of DGCX front month WTI Light Crude Oil is $50.00 and the last available RBI US Dollar reference price is INR 67.0025 /US$, then the Final Cash Settlement Price for the front month DICO contract shall be $3,350.12 rounded off to $3,350.00 (i.e. $50.00*67.0025 and rounded off to the nearest tick) Last Day of Trading Last Day of Trading shall be the 4th Business Day prior to the 25th calendar day of the month that precedes the Delivery Month. If the 25th calendar day is not a Business Day; Last Day of Trading shall be the 4th business day prior to the business day that precedes the 25th calendar day. If the 4th business day is not a DGCX or an Indian business day, then the preceding DGCX Business Day which is not a holiday in India shall be the Last Day of Trading. Trading Days Monday through to Friday Trading Hours DGCX Trading Hours Trading Months At the outset, two serial contract months and a spread contract will be available for trading. New Contract Listing Business day immediately following the last trading day Max Order Size 500 contracts for Banks and institutions promoted by Banks. All other entities 200 contracts EFP / EFS / Block Trades As per DGCX By-Laws Time Limit for EFP / EFS / Block Trade Registration Up to 5 minutes after cessation of trading on any trading day Initial Margin based on SPAN USD 600 per lot (subject to change) Extra Margin At times of high volatility, an extra margin, as deemed fit by the Exchange, may be charged. Calendar Spread Margin 100% benefit is offered on calendar spread positions Daily Price Movement limit No Limits - Note 1* *There will be no limits on intra-day price movements, however to restrict data-entry errors the system will not allow entry of orders having prices higher or lower than 300 as compared to the previous closing price. The DGCX shall relax the intra-day price range for the prices of the contract approaching the 300 limit.
Expiry Month Expiry Code Last Trading Day Oct'18 DICO-20181019 19 Oct 2018 Nov'18 DICO-20181116 16 Nov 2018