• search

Dubai gold and commodities exchange to introduce currency trading

Written by: Staff
Subscribe to Oneindia News

Mumbai, Apr 4 (UNI): The Dubai Gold and Commodities Exchange (DGCX) will soon be introducing currency futures trading following receipt of regulatory approval from the Emirates Securities and Commodities Authority (ESCA).

DGCX, which plans to introduce option trading in gold and silver by the year end, is also contemplating of adding other products to its offerings portfolio which include marine fuel oil, steel, cotton, pulses, freight rates and others depending upon market opportunities.

Announcing this to journalists here today, Mr Jignesh Shah, DGCX Vice-Chairman, said ''initially the Exchange will trade futures contracts in three currencies-- Euro, Yen and Pound Sterling. Besides being dollar-denominated, the contracts will be deliverable. The contracts will mature in March, June, September and December, each year.'' DGCX will, in two weeks time, announce the detailed contracts specifications and procedures for the existing or new members to participate in these markets, said Mr Shah, adding,''this will include a category of membership to be known as Forex Trade Membership for those entities who wish to trade on DGCX currencies markets as principal.'' The National Bank of Dubai and HSBC will act as delivery banks for the purpose of setlement of DGCX currencies futures contracts.

Apart from being among the handful of exchanges globally, offering trading on commodities and currencies under one umbrella, DGCX is already into futures trading in silver Mr Shah added. DGCX had launched silver futures trading on March 26, 2006.

''These initiatives showcase the pace of deevelopment at DGCX and the vision of its management,'' Mr Shah, also the Managing Director of Multi-Commodity Exchange (MCX) of India, pointed out.

DGFX, chairman, Mr Colin Griffith, said that the average daily international foreign exchange trading volume was USD 1.9 trillion in April 2004. ''Total volumes in exchange-traded foreign currency derivatives rose by over 57 per cent from 55.34 million contracts in 2004 to 165.51 million contracts in 2005,'' he pointed out.

Mr Griffith further said that the DGFX had on its roster 200 members in November 2005 and India had the second largest number of membership. ''Transaction costs will also be 10-to-15 per cent cheaper than the US exchanges in gold and silver,'' he averred.

DGCX is a 50:50 joint venture between the Dubai Metals&Commodities Centre (an arm of the Dubai government) and MCX of India and Financial Technologies of India Limited.

UNI JJ PP SKB2014

For Breaking News from Oneindia
Get instant news updates throughout the day.

X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more