The Dubai Gold and Commodities Exchange plans to list four currency futures contracts this year to help investors hedge their financial risk in China, Russia, South Korea and South Africa.
These will include renminbi, ruble, won and rand futures in the next three to six months, Gary Anderson, chief executive officer of the exchange, said in an interview to Bloomberg. The DGCX already offers contracts in gold, silver and oil derivatives.
“We want to be seen as the emerging-market exchange of choice,” Anderson said. The contracts will enable investors to mitigate the risk of fluctuations in these currencies against the U.S. dollar, he said.
The DGCX and China’s Dalian Commodity Exchange today announced they will begin trading plastics futures this week to give buyers and sellers of the commodity the ability to hedge against price swings.
The contract will trade polypropylene futures in 5 metric- ton lots priced in dollars per ton, the bourses said in a joint statement. Trading will start Feb. 28. Physical delivery will be available in Dubai for the DGCX-listed contract and in China for the Dalian-traded security, they said.
“The contract will be a benchmark of where plastics are currently trading,” Anderson said. Working together with the Dalian exchange will help pool liquidity in the two markets and boost trading in Dubai, he said.
Trading in DGCX plastics futures should reach about 1,000 lots a day in the short term and rise to 12,000 to 15,000 lots daily in a year, Anderson said.
The DGCX also plans to introduce a fund in the second quarter that provides investors access to shares of companies on Morgan Stanley’s MSCI Indian index, Anderson said. The bourse wants to expand the MSCI index-linked offering to include shares of companies listed in the U.A.E. and Qatar.
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