Dubai Gold and Commodities Exchange (DGCX) has just published a raft of record-setting metrics for the first half of 2015 and for July 2015 but is seeking to spur further the trading volumes, with a decision to cut margins on a set of futures contracts.
The changes, to come into effect on August 7, 2015, will affect 16 futures contracts, including Forex, energies and metals. From the pack of 16 futures contracts, all, apart from USD/KRW (US dollar vs Korean won), will enjoy a substantial reduction to the initial margin.
For EUR/USD, for instance, the cut is from $1,300 to $1,100. For WTI Crude Oil the cut is from $4800 to $3000. Silver and Gold will also see their initial margin requirements lowered.
Contracts with the Indian rupee, which have enjoyed great demand, will also benefit from lower margins.
The delivery margin (when applicable) will be five times the initial margin.
To view the official announcement on the changes to margin levels, click here.