DGCX Records its Best Month since Inception with 67% Growth in Volume
Dubai Gold and Commodities Exchange (DGCX) continued its record-breaking start to the year while delivering its best month since inception. Last month, the Exchange traded its highest monthly Volume of 2,097,739 contracts, valued at USD 47.03 billion, recording 67% year-on-year (Y-o-Y) growth.
The Exchange has thus far recorded 53% year-to-date growth from 2017. The spikes witnessed in DGCX’s trading volumes are a clear sign of investors’ increased appetite for protection amidst market volatility. The Exchange’s best performing product segments for the month were Currencies and Precious Metals.
Trading volumes in the Indian Rupee and G6 currencies witnessed remarkable growth in February. The Indian Rupee recorded Y-o-Y growth of 38%, with over 56,328 lots valued at USD 1.74 billion trading per day. The Pound Sterling futures contract recorded 72% growth Y-o-Y, whilst the Australian Dollar recorded month-on-month growth of 150%. The star performer was the Euro, with volume growing by 207% year-to-date, registering a total traded volume of 80,544 contracts thus far this year.
From the Precious Metals suite, DGCX’s Gold Quanto Futures recorded its highest monthly average volume of 1,714 contracts, with Y-o-Y growth of 120% from last February. Whilst Shanghai Gold set various volume and traded value records throughout the month.
Les Male, CEO of the Dubai Gold and Commodities Exchange, commented: “Last month was an extremely volatile period for the global financial markets, because of which traders are continuously seeking protection and various hedging mechanisms to mitigate their risk. These volatility spikes correspond with the record trading volumes and increased participation at the DGCX, as the Exchange offers a diverse range of products and risk management tools that support traders and investors during rapid market movements. In addition, the Exchange deploys the best risk management and surveillance systems which allow our markets participants to trade with confidence and also monitor risk in real-time.”
Meanwhile, DGCX has received regulatory approval for its much-vaunted Dubai Spot Gold – Shariah Compliant contract with further announcements to be made in due course.
“As global market volatility in early February rocked international markets, the Exchange’s unique product offering, and time zone advantages continue to feed into regional investors’ need for secure and effective risk management tools,” added Male.
About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 200 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities and currency sectors. DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae
DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognized as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 80 clearers from across the globe. For more information: www.dccc.co.ae
Meng Chan Shu
Director of Business Development and Sales
Dubai Gold and Commodities Exchange
Tel: +971 4 361 1660
Dhanya Issac/Lara Batato
Weber Shandwick PRs
Tel: +971 4 445 4222