BRIC-ing up the market: CME adds INR to its contract list

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CME Group, the world’s largest derivatives and futures exchange platform operator, is set to launch trading in INR non-deliverable forward (NDFs) FX contracts through its Globex portal by January 28.

Trading in the INR NDFs will take place in two sizes: a standard five-million rupee contract and an e-micro one-million rupee future. The move to offer INR means CME has completed its FX coverage of the Bric spectrum after only previously offering contracts in BRL, RUB and variations of RMB. The INR launch on CME also brings the exchange in line with its competitor ICE, which launched cash-settled INR and BRL contracts in November. CME’s senior managing director for interest rates and FX products Derek Sammann says the group’s move to offer INR trading is in response to growing market demand for flexible, capital-efficient tools for growth economies such as India.

“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,” says Sammann.