DGCX to Launch First FX Rolling Futures Contracts in July
EUR/USD, GBP/USD, AUD/USD perpetual contracts will offer traders greater access to international currency markets with clear and transparent regulations
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: “We are excited to expand our currency portfolio with the imminent launch of these innovative FX Rolling Futures contracts. These currencies are the most liquid and heavily traded on international markets, and are being listed on the DGCX at precisely the right time–amidst ongoing currency volatility–in response to what our 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.
“The contracts are suitable for all traders, but will offer especially great value to institutional investors, providing protection against swings in foreign exchange rates, particularly during this period of heightened volatility. In the coming months, we plan on expanding our value proposition further with the launch of more FX Rolling Futures contracts to cater to the needs of our members,” Male added.
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.
About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 148 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities and currency sectors. DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae
DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognized as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 50 clearers from across the globe. For more information: www.dccc.co.ae
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