The Dubai Gold and Commodities Exchange (DGCX) is launching three – euro, pound sterling, and Australian dollar – against the US dollar. They will be listed on the exchange on July 6.
The contracts will be perpetual, meaning they will automatically roll over at the close of the trading day if an open position still exists.
“We are excited to expand our currency portfolio with the imminent launch of these innovative FX Rolling Futures contracts,” Les Male, CEO of DGCX, said. “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.”
Expanding offerings for institutions
The new FX rolling futures contracts will be an expansion of such products on the platform for G6 currencies and the Indian rupees. According to DGCX, the Indian rupee contracts is the world’s largest pool of offshore exchange-traded .
“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,” Male continued.
Wednesday’s announcement detailed that the upcoming futures contracts will be priced in USD and will be denominated in amounts of 10,000 of the non-USD currency. The exchange will also allow block trading capabilities.
The trades in the new contracts will be cleared by the Dubai Commodities Clearing Corporation (DCCC), DGCX’s wholly-owned, and clearinghouse.
“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,” the CEO added.