Currency Futures gain favour in 2009.Summary: Currency futures Currency Futures A transferable futures contract that specifies the price at which a specified currency can be bought or sold at a future date. Notes: Currency future contracts allow investors to hedge against foreign exchange risk. are showing signs of becoming the most attractive alternative asset class in the UAE (Uninterruptible Application Error) The name given to a crash in Windows 3.0. In subsequent versions of Windows, a crash was called a "General Protection Fault," "Application Error" or "Illegal Operation." See crash in Windows and abend. so far in 2009, led by continued price volatility and a focus on currency risk hedging strategies, said Malcolm Wall Morris, Chief Executive Officer, Dubai Gold & Commodities Exchange (DGCX DGCX Dubai Gold & Commodities Exchange ). Currency Futures gain favour in 2009 * 147,000 currency futures contracts Currency futures contract Contract specifying a standard volume of a particular currency to be exchanged on a specific settlement date. traded since start of year, valued at US $9.4 billion* Currency futures contracts worth US $172,000 settled in week ending 20 March Currency futures are showing signs of becoming the most attractive alternative asset class in the UAE so far in 2009, led by continued price volatility and a focus on currency risk hedging strategies, said Malcolm Wall Morris, Chief Executive Officer, Dubai Gold & Commodities Exchange (DGCX). "The ongoing volatility in the currency markets will continue to encourage market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. to hedge their exposure to foreign currencies. From a long-term perspective, currency futures are especially beneficial to both individuals and commercial entities with investments abroad or those who are planning to invest abroad," added Wall Morris. Since the start of 2009, 147,000 currency futures contracts have traded on DGCX, valued at US $9.4 billion. This compares with 53,000 and US $4.6 billion during the same period last year, representing a 104% growth in the value of contracts traded for the currencies product range. In addition, currency futures contracts worth US $172,000 were settled in the week ending 20 March 2009, demonstrating the growing significance of the exchange in meeting end user's foreign currency requirements. DGCX is the only derivatives exchange in the Gulf region to offer currency futures contracts. Market participants can currently trade futures for a range of currencies including; Indian Rupee-Dollar, Euro-Dollar, British Pound-Dollar and Japanese Yen-Dollar. These contracts offer market participants with an attractive mechanism to hedge their price risk and exposure to foreign currencies. Mr. P.Krishnamurthy, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Division of Dubai International Securities L.L.C. added, "We have recently seen increased interest in both the currency and commodity sectors from commercial institutions and private clients in the region. In the current economic climate, market participants are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. alternative asset classes to diversify their portfolios, increase returns and better manage currency exposures." 2009 Al Bawaba (www.albawaba.com) 2009 Al Bawaba (Albawaba.com) Provided by Syndigate.info an Albawaba.com company |
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