Business | Markets
DGCX settles first currency futures contracts
Dubai Gold and Commodities Exchange (DGCX) has announced the successful settlement of the first currency contracts maturing on September 18 2006.
- Staff Report
- Published: 00:00 September 28, 2006
Dubai: Dubai Gold and Commodities Exchange (DGCX) has announced the successful settlement of the first currency contracts maturing on September 18 2006.
In the first settlement of the currency futures contracts, 1.5 million euros and £3.05 million totally valued at $7.6 million were delivered using the electronic interface between the exchange and the clearing banks. Mashreq Securities, Trust Securities and FIMAT International Banque participated in the delivery of the currencies.
Framroze Pochara, DGCX chief executive, 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 pounds delivered proves that the market participants are extremely comfortable with the efficient electronic process put in place by the exchange.
"They 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 a unique opportunity for market participants to hedge their bullion price risk in multiple currencies.
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