Brexit US fed interest rate hike possibilities leads trading interest growth on DGCX

Dubai, June 02 2016: During the month of May, the Dubai Gold & Commodities Exchange (DGCX) witnessed a flurry of trading activity due to uncertainty over Britain’s exit from the European Union and also a possible interest rate hike by the Fed in June. The Exchange witnessed a strong upswing across its precious metals, hydrocarbon and equities segments, trading an aggregate of 1.5Mn contracts in May, growing 55% from last year, while Year-To-Date (YTD) volumes saw an increase of 47% from last year, trading over 7.7 Million contracts so far this year.

Open Interest records

DGCX recorded a sharp increase in its monthly Average Open Interest (OI) of 118,000contracts, a substantial increase of 236% from the same period last year. Looking at a month-on-month comparison, the Exchange recorded the highest Average OI in WTI Mini, US SSF and Rupee Quanto, growing 38%, 83% and 47% respectively.

Gaurang Desai, Chief Executive Officer of the Exchange, said “The heightened level of trading activity in a number of DGCX products across asset classes and highest monthly open interest as yet for 2016 is a testimony to the fact that market participants are increasingly hedging their risk exposure through derivatives markets. We are working hard to expand our product range and deliver a greater number of trading solutions to meet the evolving needs of market participants in the region.”

Performance of product segments

DGCX’s precious metals segment, a key performer for the month, grew 225%over the same period last year – trading over 80,000 contracts. The Exchange’s flagship contract – Gold futures saw a record high of 97% from last year. DGCX’s Gold portfolio comprising of a Gold futures contract, a Quanto contract and a Dubai Spot contract has had its best run in the last 12 months, growing at 223% over the same period last year.

DGCX’s hydrocarbon segment saw a brisk trading close to 17,500 contracts with average volumes in WTI Crude Oil recording an impressive increase of 233% on YTD basis. Similarly, trading on the mini sized WTI futures contract gained momentum, recording the highest ever volumes with 10,092 contracts, valued at over USD 47 million.

Within DGCX’s equities portfolio, Sensex futures saw a substantial increase in volumes – trading an average of 804 contracts a day in the month of May, up 71% from over previous month.

In DGCX’s currency segment, Mini Indian Rupee futures and Indian Rupee options led growth with an increase of 97% and 48% respectively on a Year-on-Year basis. Among the G6 currency pairs, Euro and British Pound futures delivered a strong performance growing 160% and 170% respectively on a Year-To- Date basis.

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

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