The Dubai Gold & Commodities Exchange (DGCX) said on Saturday it was launching two new base metal products, aluminum futures and zinc futures.
The two new products, which will go live on March 22, are designed to appeal to global market participants, the DGCX said.
“It is key to our strategy as we want to grow regionally but we also want to expand globally,” Les Male, CEO of DGCX told Reuters.
“We seek to emerge from our Indian and regional dominance ... these two new products will appeal more globally as they are more applicable to global clearers,” Male said.
All trades in the new contracts will be cleared by DGCX’s wholly-owned and regulated clearing house, the Dubai Commodities Clearing Corporation (DCCC), which is recognized by the European Securities and Markets Authority as a third-country central counter party.
The size of each aluminium futures and zinc futures contract will be 5 metric tons (MT), denominated and traded in US dollars.
“It was clear our members wanted these contracts and they wanted them to be settled in US dollars,” Male said.
Male said further products would be rolled out during the year, mainly foreign exchange and gold.
Agricultural products were “not on the immediate horizon,” Male said, but added they would be considered according to member demand.