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DGCX to launch first FX rolling futures contracts

By Arabian Post Staff

The Dubai Gold and Commodities Exchange (DGCX) today confirmed the launch date of its three FX Rolling Futures contracts – Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD) against the US Dollar (USD). The contracts will go live on Monday 6 July, 2020, and will expand its suite of currency products that include G6 and Indian Rupee contracts, with the latter being the world’s largest pool of offshore exchange-traded Indian Rupee liquidity.

The new FX Rolling Futures contracts are perpetual contracts that are automatically rolled over at the close of the trading day if an open position still exists. The new, dynamic contracts will equip market participants with tools to manage their price risk and exposure to foreign currencies, and offer traders greater access to international currency markets with clear and transparent regulations.

Les Male, CEO of DGCX, said the currencies included in the contracts  are the most liquid and heavily traded on international markets, and listed on the DGCX  amidst ongoing currency volatility in response to what the market participants have asked for. Not only do the contracts offer investors greater access to international currency markets with clear, understandable regulations, but the perpetual open nature of them will also provide them with unique opportunities to more efficiently hedge their risk exposure.

The new FX Rolling Futures contracts will be priced in USD, and denominated in amounts of 10,000 of the non-USD currency. Block trading will be permissible in the contracts.

All trades in the new contracts will be cleared by the DGCX’s wholly-owned and regulated clearing house, the Dubai Commodities Clearing Corporation (DCCC). DCCC is regulated and licensed by the Securities & Commodities Authority (SCA) as a Central Clearing Counterparty (CCP), and is also recognised by the European Securities and Markets Authority (ESMA), the regulatory body for the EU.

The DGCX continues to provide investors with a wide range of derivative products that allow them to manage their risk effectively. In recent months, there has been a surge in trading of the Exchange’s G6 currency portfolio, which has now recorded impressive year-to-date volume growth of 458.54%, compared to the same period last year.

Also published on Medium.

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