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Traders at the Dubai Gold and Commodities Exchange. DGCX will go live on July 6 with three rolling currency futures contracts. Image Credit: Gulf News archives

Dubai: The Dubai Gold and Commodities Exchange (DGCX) on Wednseday launched date of its three FX rolling futures contracts – Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD) against the US Dollar (USD).

The contracts will go live on Monday 6 July, 2020, and will expand its suite of currency products that include G6 and Indian Rupee contracts, with the latter being the world’s largest pool of offshore exchange-traded Indian Rupee liquidity.

“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,” Les Male, CEO of DGCX.

The FX rolling futures contracts will be priced in US dollar, and denominated in amounts of 10,000 of the non-USD currency. Block trading will be permissible in the contracts.

“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).

What are currency rolling futures contracts
Currency rolling futures contracts are perpetual contracts that are automatically rolled over at the close of the trading day if an open position still exists. The new, dynamic contracts will equip market participants with tools to manage their price risk and exposure to foreign currencies, and offer traders greater access to international currency markets with clear and transparent regulations.