Yogesh Khairajani , Special to Authority Magazine April 15, 2021
The Dubai Gold & Commodities Exchange (DGCX) on Monday announced the launch of its Pakistani rupee (PKR) futures contract and said it is now available for trading.
As the first-of-its-kind on any regulated exchange in the world, the contract will provide members and their clients with the ability to hedge exposure to the Pakistani rupee. It will also provide trading opportunities against the wide range of existing foreign exchange currency products that DGCX makes available for trading.
“We are pleased to finally launch the highly anticipated PKR futures contract, which complements our suite of existing products, and enables DGCX market participants to tap further into the Asian markets,” Les Male, CEO of DGCX, said in a statement to Khaleej Times on Monday.
“As we move into the second quarter of 2021, we continue to see interest in more currency products — and are exploring opportunities to launch similar initiatives soon,” he said.
The contract size is Rs2,000,000 of base currently and will be traded and cash settled in US dollars based on publicly available reference prices displayed on the last trading day. Trading hours will be from 07:00 to 23:55, Gulf Standard Time.
The contract will allow regional market participants with the ability to hedge exposure to the Pakistani rupee, on a globally recognised, regulated and secure platform. Additionally, the Dubai Commodities Clearing Corporation (DCCC) will provide margin offsets for calendar spreads in PKR Futures, which will result in greater capital efficiency for DGCX members.
Rising interest in currency derivatives
Good for exporters, importers