DGCX Year-to-date Volumes Up 35%; Shari’ah Spot Gold sees impressive debut
The world’s only exchange traded Shari’ah Compliant Spot Gold contract (DGSG), which listed on the DGCX on March 29th, has been very well received by investors, trading over 314 kilograms of gold worth USD 13.39 million since inception. The product was the first of its kind to be launched in the GCC, and its success demonstrates a strong appetite for exchange-traded Islamic products among investors.
The contract’s success reinforced the strong trading activity of the Exchange’s other gold products, with trade volumes of DGCX’s Shanghai Gold Futures growing in April by 678% year-to-date, and India Gold Quanto Futures growing by 73% year-on year. The rising popularity of gold trading comes amid ongoing polticial and economic uncertainty.
DGCX continued its record-breaking trajectory throughout April, and has now traded over 7.18 million contracts this year across all products, up 35% from last year. The main drivers, other than the aforementioned gold contracts, of last month’s trading were G6 currency pairs and Indian Rupee Futures.
Les Male, CEO of the DGCX, commented: “We are delighted to see the Shari’ah Compliant Spot Gold Contract record an impressive debut with strong interest from investors. Its success demonstrates that there is high demand for innovative Islamic financial instruments that provide exposure to attractive assets, both regionally and internationally. Our G6 currency portfolio also continued to build on its strong start to the year with consistent growth throughout April. We remain upbeat that we will see increased trading activity as we approach the second half of the year.”
Other notable performers on the DGCX last month were the Pound Sterling, which recorded Average Open Interest (AOI) of 1,584 contracts, and Brent Crude Oil Futures, which saw a substantial jump in trading volumes year-on-year.
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 175 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
Dhanya Issac/Jonathan Fisher
Weber Shandwick PR
Tel: +971 (0) 4 445 4222