US$ 7.6 Million worth of foreign currency delivered

UAE - Dubai, 27 September 2006 

Dubai Gold & Commodities Exchange (DGCX) announced successful settlement of the first currency contracts maturing on September 18th 2006. In the first settlement of the currency futures contracts, 1.5 Million Euros and 3.05 Million Sterling Pounds totally valued at US$ 7.6 Million were delivered using the electronic interface between the Exchange and the clearing banks.  Mashreq Securities, Trust Securities and FIMAT International Banque SA participated in the delivery of the currencies.

Mr. Framroze Pochara, Chief Executive Officer said, "We are extremely delighted that in the first ever currency settlement, we have witnessed strong participation from both retail investors as well as banks. The large quantity of euros and sterling pounds delivered proves that the market participants are extremely comfortable with the efficient electronic process put in place by the exchange and are using it for hedging the currency risk prevalent in their businesses or using the futures platform to take a view on the currency markets."

DGCX offers bullion and currencies contracts on a single platform which presents unique opportunity for market participants to hedge their bullion price risk in multiple currencies. For example, to hedge the price risk of a falling dollar, the participant can offset this risk by taking an appropriate position in Euro/US Dollar or GBP/US Dollar contracts traded on DGCX. Increasingly, players like Banks, Exchange houses and bullion dealers are capitalizing on this advantage to manage their bullion as well as currency risks.

In addition to the traditional avenues for investments in equities, bonds, bank deposits and real estate, the precious metals and currency futures product offered by DGCX, provides more avenues for investors to diversify their risk across various asset classes and thereby have a more balanced investment portfolio.  

DGCX is committed to provide a wide range of products offering superior value proposition for members of the Exchange in a cost and time efficient manner, Mr. Pochara added.

-Ends- 

Note to the Editor:
About DGCX:
The Dubai Gold and Commodities Exchange (DGCX) is a fully automated, online commodities exchange. Strategically located in Dubai, the exchange is the first international commodities derivatives marketplace in the time zone between Europe and the Far East.

DGCX is a joint venture between the Dubai Metals and Commodities Centre, (DMCC), Financial Technologies (India) Limited (FTIL) and Multi Commodity Exchange of India Ltd. (MCX).

At present DGCX offers its members and their clients, six alternate month gold futures contracts for one year to trade in complemented by silver futures and currency futures in Euros, Pound Sterling and Japanese Yen. A diversified range of commodities such as steel, marine fuel oil, freight rates and cotton will be introduced for trading as exchange progresses further.

© Press Release 2006