The Dubai Gold and Commodities Exchange (DGCX) has launched three new currency contracts: Russian ruble futures, Korean won futures and South African rand futures. The new contracts went live on 26 December.
These new contracts will provide DGCX market participants with additional tools to manage their price risk and exposure to foreign currencies, as well as provide new arbitrage opportunities.
“Emerging market currencies have been extremely volatile in the past few years due to various macro-economic factors,” says Gaurang Desai, interim CEO of DGCX. “The launch of the Russian ruble, Korean won and South African rand futures represent an important facet of our comprehensive and long-term emerging market product strategy.
“With the increasing prominence of these three currencies in the emerging markets landscape, the launch of these contracts assumes considerable significance. The Middle East’s trading links with South Africa, Russia and South Korea have been growing rapidly over the past few years and businesses transacting with these markets need to make sure that their currency price risk is managed effectively to ensure their long-term sustainability,” he adds.
The new currency contracts are cash settled and can be traded Monday through Friday from 8:30am to 11:30pm Dubai Time (4:30am to 7:30pm GMT and 12:30am to 3:30pm Eastern Time). The contracts are sized at $50,000 with the contract price quoted in US dollars.
The Dubai Commodities Clearing Corporation (DCCC), a wholly owned subsidiary of DGCX, will clear the new contracts.