Dubai’s DGCX to launch first FX rolling futures contracts in July 2020

The Dubai Gold and Commodities Exchange (DGCX) confirmed that it would launch three FX Rolling Futures contracts – Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD) against the US Dollar (USD) on July 6 this year.

With the launch, DGCX will expand its suite of currency products that include G6 and Indian Rupee contracts.

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. They 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 will enable market participants with tools to manage their price risk and exposure to foreign currencies, and offer traders 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 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).

In recent months, there has been a surge in trading of the exchange’s G6 currency portfolio, with year-to-date volume growth of 458.54 per cent, compared to the same period last year.