The Dubai Gold & Commodities Exchange (DGCX) on Wednesday confirmed that it will soon launch a Pakistani Rupee (PKR) Futures Contract, the first of its kind on any regulated exchange in the world.
The DGCX said the move would enable market participants to expand their trading opportunities to the Pakistani market.
The contract, which is set to go live on April 16, will allow regional market participants with the ability to hedge exposure to the Pakistani Rupee.
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.
Les Male, CEO of DGCX, (pictured below) said: “We are proud to launch the long-awaited PKR Futures Contract, which will add further diversification to our currencies portfolio, and provide our members with additional short-term hedging and arbitrage opportunities.
“Pakistani nationals are the second largest population in the UAE, and as this contract is the first of its kind in any regulated exchange, we are confident that this contract will provide market participants with ample opportunity and flexibility to gain exposure to the large and increasingly prominent Pakistani market.
“We are confident that this launch will play a key role in DGCX’s future growth strategy and look forward to announcing the launch of similar initiatives shortly.”
The contract size is 2,000,000 of base currently (PKR) and will be traded and cash settled in US Dollars based on publicly available reference prices displayed on the last trading day.
The announcement comes on the heels of surging interest in DGCX’s currency contracts.
In February, the DGCX registered significant interest in its Indian Rupee (INR) Future Contracts trading at the end of the month.
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