14:15 29.12.2014

UICE launches trading in forex futures

2 min read
UICE launches trading in forex futures

The Ukrainian Interbank Currency Exchange (UICE) on December 26 stock exchange launched electronic trading in non-deliverable futures for the forex rate of the Ukrainian hryvnia against the US dollar, the euro and the Russian ruble, according to a UICE press release.

As specified on the currency exchange's website, one contract is USD/EUR 1,000, or RUR 10,000. On the first day of trading, the total volume exceeded UAH 2 million, including $78,000 in UAH/USD forex futures, EUR 43,000 in UAH/EUR forex futures, RUR 200,000 in UAH/RUR forex futures. The average weighed price of a contract due to be fulfilled in January 2015 was UAH 16.3, UAH 19.9 and UAH 0.295 respectively.

The UICE plans to trade in forex futures on a daily basis, expanding the range of tools by adding extra orders of priority for contracts and currency pairs, the press release says.

"Given the high volatility of the Ukrainian currency market at the moment, these financial instruments are a relevant tool to hedge forex risks, which will ease speculation-related load on the spot and cash forex markets," the exchange said.

As reported, the UICE from October 30 to November 6, 2014, successfully conducted a trial period of trading in the above-mentioned currency pairs. Both resident banks and companies and international players took part in the trading.

Exporters and importers who would like to safeguard themselves against forex fluctuations are expected to be major participants in forex futures trading.

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