Dubai, December 05, 2016: Dubai Gold & Commodities Exchange (DGCX) capped its 11th anniversary on November 21st, delivering a stellar year-to-date growth of 33%, trading over 13.2 million contracts. The Exchange also recorded a substantial growth of 34% in November 2016 from last year. Strong Open Interest (OI) and growth across its asset classes contributed to this month’s success with monthly overall open interest aggregating at 546,062 contracts.
On November 11th, the Exchange recorded the highest ever daily volume with 186,511 contracts, proving once again that DGCX is a safe harbour for global investors who are looking to hedge their risks and neutralize their exposure to volatile market movements resulting from the US Presidential Elections and India’s move to demonetize Rs 500 and Rs 1000 banknotes.
Indian Rupee products also scored multiple Open Interest (OI) records with Indian Rupee futures and Mini Indian Rupee recording the highest ever monthly Average Open Interest of 201,456 and 13,424 contracts respectively, whereas Indian Rupee Options recorded the 2nd highest monthly Average Open Interest of 15,607 contracts in November 2016. The Indian Rupee Quanto futures also recorded the highest monthly Average Open Interest of 308,756 contracts.
Gaurang Desai CEO of DGCX said: “As DGCX celebrated its 11th anniversary this month, I am pleased to state that we see continued and consistent growth both in terms of Open Interest and daily volumes traded. In November, we achieved the highest OI and set a new daily volume trade record on November 11th with 186,511 contracts. This results from DGCX best meeting the needs of participants’ trading strategy and approach in the face of high market volatility.”
DGCX’s precious metals suite emerged as the best performer in November, with the segment’s overall volumes registering an incremental growth of XX. Volumes in Gold futures, Dubai India Gold and Spot Gold were up by 126%, 88% and 5% respectively. The number of participates in Gold futures was up by 6%. Volumes in Silver futures and Copper futures grew by 81% and 370% respectively.
“Gold regained some ground on the back of the weaker dollar following the recent turmoil and uncertainty that embroiled the US elections and Indian Rupee demonetisation in November. This reflected the augmented interest and trading activity of DGCX’s gold suite which covers key bullion benchmarks across the world. Another key factor was the increasing interest in spread trade between Gold futures and Dubai India Gold futures. The recent listing of Shanghai Gold futures, the first Chinese bullion contract to be listed outside of China – clearly indicates that we are heading in the right direction, both organically and by innovatively expanding our precious metals segment,” Gaurang added.
Maintaining feedback with members and continuous evaluation of its existing products are central to DGCX’s strategy and it is along these lines that the Exchange recently relisted the Brent futures contract on 25th November 2016 due to growing demand from existing members. Given the huge potential for hydrocarbons in this region, DGCX plans to introduce more energy products to appeal to Exchange’s incumbent members as well as to new participants.
DGCX also participated in the 3rd annual FOW Dubai forum which focussed on increasing participation from both domestic and international players and highlighted how developments in market infrastructure and technology can encourage growth of the derivatives sector.
November results continue to support DGCX’s firm standing as the largest and the most diversified derivatives bourse in the Middle East. Responsible for creating a host of major milestones for the region, the Exchange began offering trading opportunities to financial communities and investment houses in both the Middle East and around the globe since its inception in 2005. DGCX set the bar high when it launched the first precious metals derivatives contract in Gold in the same year, followed by the first emerging markets currency derivatives contracts in 2007 with the launch of the Indian Rupee futures contract.
“DGCX’s global reach is expanding and this was recently evident with ICBC coming on board as our sixth Clearing and Settlement bank. I can proudly say that the growth we have experienced over the past 11 years has been fantastic and we are very much looking forward to the next stage of our development,” Gaurang concluded.
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