DGCX’s Weekly INR and WTI Futures Gain Momentum in October
Trading during October was underpinned by a spike in the DGCX Group’s Indian Rupee (INR) suite, as market participants looked to hedge their risk amid market volatility. Notably, the DGCX Group’s Weekly INR-US Dollar (USD) Futures Contract traded strongly, registering a Y-O-Y ADV growth of 119.19%. The DGCX’s Mini INR Futures Contracts also drew a Y-O-Y ADV growth of 85.21%, compared to the same period last year.
There was also sustained interest in the DGCX’s West Texas Intermediary (WTI) Futures Contract during the month, as oil prices soared with U.S. crude hitting a seven-year high during the last week of October. The WTI Futures Contract registered a year-on-year (Y-O-Y) Average Daily Volume (ADV) growth of 44.73%, compared to the same period last year.
Trading across the DGCX’s precious metals portfolio was also strong during the month, with the exchange’s flagship Gold Futures Contract recording a Y-O-Y ADV growth of 32.62% compared to the same period last year.
Once again, The Dubai Gold and Commodities Exchange (DGCX) also registered a high monthly Average Open Interest (AOI) of 135,828 contracts in the month of October.
Following the DGCX’s strategic MoU with Victoria Falls Stock Exchange (VFEX) - the DGCX Group’s senior management participated in a four-day workshop in conjunction with VFEX, in Zimbabwe. The session served as an important platform for DGCX’s senior team to provide VFEX representatives and other market participants in Zimbabwe with an exchange of technical knowledge, best practices, and support to establish an international commodities exchange in Zimbabwe. The envisioned commodities exchange is expected to be a key part of Zimbabwe’s planned offshore financial services center – boosting investment in the sector and increasing financial flows into the capital and Victoria Falls. The new commodities exchange will pave the way for more exchanges in the African market and represents just one of DGCX’s several initiatives in the African region, as part of the exchange’s strategic expansion into the continent.
The DGCX also participated in World Investor Week 2021 during October, helping to promote awareness about the importance of investor education and protection. The initiative is a week-long, global campaign promoted by IOSCO and led by the Securities and Commodities Authority (SCA) in UAE.
Les Male, CEO of DGCX, said: “The DGCX enjoyed a strong month of trading in terms of increased volumes and value. We registered heightened interest in our INR currency and precious metals portfolios during October, as market participants looked for short-term contracts and arbitrage opportunities to match their business and hedging requirements. A buoyant sentiment on oil prices also saw DGCX’s WTI Futures Contract perform strongly, as US crude reached a seven-year high. Going forward, we have a number of new product launches in the pipeline, which we will soon announce over the coming months.”
The Dubai Gold & Commodities Exchange (DGCX) is the region’s leading derivatives exchange and has played a pioneering role in developing the regional market for derivatives trading, clearing and settlement.
The DGCX owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DGCX & DCCC are regulated by the Securities & Commodities Authority (SCA). It is recognised as a licensed Central Clearing-Counterparty (CCP) by SCA and a Third-Country CCP by European Securities Markets Authority (ESMA).
The DGCX’s strategic geographic location in Dubai between the Far East, Europe and Africa serves as a unique, global window for traders and investors. With over 100 members across the world, the DGCX drives liquidity in the market by offering a broad range of futures and options contracts covering base and precious metals – including the world’s only Shari’ah Compliant Spot Gold Contract – hydrocarbons, equities and currencies.
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