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The Dubai Gold and Commodities Exchange (DGCX) will launch black pepper contracts early next year but before that it will commence soyabean oil contracts in November.
According to Ian Wright, Chief Business Officer, DGCX, both these contracts will be physically deliverable.
“We are foraying into soft commodities. The soyabean oil contracts will have the Chinese norms as its benchmark. We are working out the details. There is a lot of interest for soyabean oil in this region,” Wright, who was in India for a gold convention in Pune, told Business Line .
The black pepper contract is obviously aimed at attracting Indian interest. In fact, DGCX is trying to grab more attention from the sub-continent and it plans to introduce 100 gm physically deliverable gold contracts in rupee in the fourth quarter next year.
The bourse launched polypropylene futures seven months ago and it was doing “reasonably good,” he said. “The polypropylene launch has actually encouraged us to foray into soft commodities,” Wright said.
At least 20 per cent of our trading share comes from Asia, except India. Europe accounts for 30 per cent of the trade. India and rest of the Gulf region account for the remaining 50 per cent.
Established in 2005, DGCX is owned by Dubai Multi Commodities Centre and conducts trade in precious metals, base metals, currencies, energy and equity indices.
“Our trade volume peaked to $186 billion a month around the middle of last year but then dropped to $56 billion. Currently, it has improved to around $85 billion,” he said.
Among its products, the Indian rupee-US dollar futures account for 90 per cent of the trade volume. “It is quite popular. It has forced us to plan the launch of rupee-euro and rupee-pound futures,” Wright said.
“We are also planning MSCI India Index and single stock equities targeting India,” he said. Currently, DGCX offers S&P BSE Sensex futures.
Though trading has been quiet this year, he expects the interest to pick up once commodities turn volatile.
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