DGCX to launch Middle East's first currency futures

DGCX has yet to announce contract specifications and the procedures for existing or new members to take part in these markets. However, they will include a category of membership to be known as Forex Trade Membership for those entities that want to trade on DGCX currency markets as principal. National Bank of Dubai and HSBC will act as delivery banks for settlement of the contracts.

"Dubai is fast emerging as a financial hub in the Middle East, with many of the Fortune 500 companies having a presence here. The region has a huge potential for currency trading," said David Rutledge, director at DGCX and chief executive of the Dubai Multi Commodities Centre.

Framroze Pochara, chief executive officer of DGCX, added that the decision to introduce currency futures was in response to feedback from the market following the introduction of gold and silver futures four months ago. The exchange expects demand to come from corporate treasuries, importers and exporters, professional and interbank proprietary traders, and retail participants in the region.

DGCX is a joint venture between the DMCC, Financial Technologies (India) and Multi Commodity Exchange of India. The exchange received approval by the Emirates Securities and Commodities Authority on March 27.