Sunday 21 July 2019

DGCX to launch new aluminium, zinc futures

DUBAI, March 2, 2019

The Dubai Gold & Commodities Exchange (DGCX) and Dubai Commodities Clearing Corporation (DCCC) today announced an expansion to their existing portfolio of metals products with the launch of new base metal products. 
The two new products, Aluminium Futures and Zinc Futures, will go live on March 22.
The new products will provide investors with an opportunity to mitigate the risks involved in the base metal markets, and appeal to global participants, by enabling them to hedge prices efficiently. 
The size of each Aluminium Futures and Zinc Futures contract will be 5 metric tonne (MT), denominated and traded in US dollars.
DGCX Chief Executive Officer Les Male said: "We are excited to introduce new products to meet the ever-growing needs of our member community. The imminent launch of these two products is a response to growing demands and investor feedback, and will play an important role in the DGCX Group’s growth strategy moving forward."
"We are confident that they will further strengthen our value proposition to all participants across the non-ferrous metals supply chain, while complementing our existing portfolio of diverse products," observed Male.
"The new products will be cash settled in US Dollars, and EFS, EFP and Block trading will be permissible in the contracts," he stated.
According to him, all trades in the new contracts will be cleared by the wholly-owned and regulated clearing house, the Dubai Commodities Clearing Corporation (DCCC). 
The DCCC is recognized by Esma as a Third-Country Central Counter Party and has rightfully earned itself a credible reputation acting as a guarantor to all trades executed on the DGCX,” Male added. 
The DGCX traded over 1.62 million contracts in February, valued at $31.1 billion. 
DGCX’s currency portfolio saw robust trading activity throughout February. Euro Futures and Rupee Mini Futures recorded their highest monthly Average Open Interest (AOI) of 2,919 and 119,173 contracts respectively, it stated. 
Open Interest is defined as the number of contracts outstanding in derivatives (such as futures and options) trading at any time on a market and is a definitive measure of a product’s and wider exchanges success, it added.-TradeArabia News Service


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