Currency Futures Worth $9.4 Billion Traded on DGCX.
The ongoing volatility in the currency markets will continue to encourage market participants to hedge their exposure to foreign currencies, said Malcolm Wall Morris, Chief Executive Officer, Dubai Gold & Commodities Exchange, or DGCX.
"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. AaAa
Since the start of 2009, 147,000 currency futures contracts have traded on DGCX, valued at $9.4 billion. This compares with 53,000 and $4.6 billion during the same period last year, representing a 104 per cent growth in the value of contracts traded. Aa
In addition, currency futures contracts worth $172,000 were settled in the week ending on March 20, 2009, demonstrating the growing significance of the exchange in meeting end user's foreign Aacurrency requirements. Aa
DGCX is the only derivatives exchange in the Gulf region to offer currency futures contracts. Aa Market participants can currently trade futures for a range of currencies including Indian Rupee-Dollar, Euro-Dollar, British Pound-Dollar and Japanese Yen-Dollar.
P. Krishnamurthy, CEO Financial Services Division of Dubai International Securities said: "We have recently seen increased interest in both the currency and commodity sectors from commercial institutions and private Aaclients in the region.
In the current economic climate, market participants are looking for alternative asset classes to diversify their portfolios, increase returns and better manage currency exposures."
Copyright 2009 Khaleej Times. All Rights Reserved.
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|Publication:||Khaleej Times (Dubai, United Arab Emirates)|
|Date:||Mar 26, 2009|
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