DGCX's recently launched FX rolling futures contracts deliver significant value to market participants amidst ongoing currency volatility

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


Dubai: Moving into the final quarter of 2020, the Dubai Gold and Commodities Exchange (DGCX) maintained its strong momentum, providing investors with a wide range of derivative products to manage their risk effectively. Last month, the DGCX’s three newly launched FX Rolling Futures Contracts – Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD), all against the US Dollar (USD) – saw an increase in trading activity, and have now traded a combined total of 6,449 lots valued at USD 75 million since their launch in July.

Les Male, CEO of DGCX, said: “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. 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. As an exchange deeply committed towards fulfilling the needs of our member base, we will soon be announcing the launch of more innovative products aimed at providing significant value to investors during this challenging period.”

The DGCX’s FX Rolling Futures Contracts offer investors the ability to take advantage of the arbitrage opportunities that exist between DGCX’s traditional quarterly futures contracts and these perpetual rolling contracts. At the same time, margin offsets ensures maximum capital efficiency for market participants.  

During September, the Exchange’s Euro and British Pound Futures Contracts also performed strongly, and have now registered impressive year-to-date (Y-T-D) volume growth of 193% and 327% respectively, compared to the same period last year.

The DGCX will be participating in World Investor Week, a week-long, global campaign promoted by IOSCO and led by the Securities and Commodities Authority (SCA) in UAE, aimed at raising awareness about the importance of investor education and protection, as well as highlighting the various initiatives by securities regulators specially during these times. 


About DGCX:

The Dubai Gold & Commodities Exchange (DGCX) is the region’s leading derivatives exchange and has played a pioneering role in developing the regional market for derivatives trading, clearing and settlement. 

The DGCX owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DGCX & DCCC are regulated by the Securities & Commodities Authority (SCA). It is recognised as a licensed Central Clearing-Counterparty (CCP) by SCA and a Third-Country CCP by European Securities Markets Authority (ESMA).

The DGCX’s strategic geographic location in Dubai between the Far East, Europe and Africa serves as a unique, global window for traders and investors. With over 100 members across the world, the DGCX drives liquidity in the market by offering a broad range of futures and options contracts covering base and precious metals – including the world’s only Shari’ah Compliant Spot Gold Contract – hydrocarbons, equities and currencies.

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