DGCX records strong start to 2016 with launch of Equity futures
- DGCX records a healthy start to 2016 with volumes showing a 15% growth in volumes over January 2015.
- 15 single stocks futures from US and India launched on January 15.
- India Gold volume doubles from December 2015.
- Indian Rupee Options volume grew more than three-fold Year on Year.
Dubai, February 4, 2016: The Dubai Gold & Commodities Exchange (DGCX) has recorded a strong start to 2016 with January figures showing an Open Interest increase of 26% vs. January 2015. The growing Open interest on the exchange underlines the opportunity that DGCX is presenting to regional investor population as a fully-regulated platform that can be used to hedge risk in the face of continuing economic volatility.
January numbers reflect the increasing use of derivatives to hedge foreign exchange (FX) volatility particularly in emerging market currencies such as the Indian Rupee and South African Rand. Market participants appreciated the cost effective investment mechanism provided by Indian Rupee Options. Rupee Options volumes grew by 352% in January 2016 vs. January 2015.
The recently launched Dubai Spot Gold Contract traded 1516 kgs in January 2016, the DCCC has also facilitated delivery of 73 kgs of physical gold till date. Jewelers and other bullion participants have started to utilize Dubai Spot Gold to lock-in the price and manage physical supply chain needs using the unique roll-over mechanism. Flight to safety also saw the India Gold contract volume double during January 2016.
On January 15, DGCX launched its equity product segment by offering 15 Single Stock futures on blue-chip USA stocks like Facebook, Google, Apple, JP Morgan and Microsoft. 10 Indian stocks were part of this launch and included Axis Bank, Tata Motors, TCS, Infosys, Reliance, HDFC Bank, SBI, ICICI, L&T and Maruti Suzuki.
Gaurang Desai, CEO of DGCX, said: “Against the backdrop of global economic turmoil and a volatility across market segments, investors and corporates need to be aware of the important role derivatives futures exchanges such as DGCX play as a regulated platform to hedging their risk and optimally manage their balance sheets. With crude oil prices falling below USD30 per barrel in January, it is becoming increasingly important for economies, particularly oil reliant ones, to look at ways of hedging their risk and managing their fiscal deficits.”
About DGCX:Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives.
DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. For more information: www.dgcx.ae