DGCX trades $75mln in new futures contracts

Currency volatility fuels uptake of newly launched products

  
A stock index board is seen as investors look at share prices on the trading floor at the Dubai Financial Market January 31, 2011.

A stock index board is seen as investors look at share prices on the trading floor at the Dubai Financial Market January 31, 2011.

REUTERS/Jumana El-Heloueh

The Dubai Gold and Commodities Exchange (DGCX) has seen an increase in trading activity through its new FX rolling futures contracts.

In September,  the three futures contracts - Euro, Pound Sterling and Australian Dollar, all against the US dollar -  saw an increase in trading activity, and have now traded a combined total of 6,449 lots valued at $75 million since their launch in July.

The growth in uptake has been fueled by investors looking to manage their risk amid the current economic conditions and currency volatility.

“Owing to a substantial increase in currency volatility, caused by ongoing COVID-19 cases, a lack of progress in Brexit trade negotiations, and a recent string of much lower than expected economic growth forecasts, DGCX recorded significant traction in its new FX Rolling Futures Contracts last month, as members increasingly looked to leverage dynamic tools to manage their risk,” said Les Male, CEO of DGCX

“Heading into the last quarter of the year, global uncertainty still looms, and we expect these unique products to continue on their strong growth trajectory, enabling investors to mitigate the risks involved in the currency market.”

During September, the Exchange’s euro and British pound futures contracts registered year-to-date volume increase of 193 percent and 327 percent, respectively, compared to the same period last year.

(Writing by Imogen Lillywhite; editing by Cleofe Maceda)

Imogen.lillywhite@refinitiv.com 

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