DUBAI / WAM
The Dubai Gold and Commodities Exchange (DGCX) crossed 6 million contracts in April, growing 45% over the same period last year whilst maintaining a steady Average Daily Open Interest of 109,487 contracts.
Growth was primarily driven by DGCXâ€™s currency segment, which saw a substantial increase of 43% compared to the same period last year trading 5,740,764 contracts on a Year-to-date (YTD) trading basis.
The G6 currency pair futures saw highs of 122,109 contracts with Euro and British Pound futures leading the way with a growth of 190% and 154% respectively. Among the emerging market currencies, South African Rand futures demonstrated a steady growth of 47% over same period last year. Indian Rupee options also saw brisk trading this year with 96,940 contracts traded, up 220.7% from the same period last year.
The month of April saw the Exchange setting several records especially in relation to recently launched products. Chinese Yuan futures recorded the highest monthly volume with 4,245 contracts worth US$ 212mn while the Indian Rupee Quanto recorded the 2nd highest ever Average Daily Volume (ADV) of 27,071 contracts. Volumes in US Single Stock futures were up by 107% as compared to March.
Spot Gold contract continued it growth trajectory attracting local bullion participants with physical delivery of 5,760 ounces, an increase of 38% when compared to last month, similarly ADV in Gold futures witnessed an increase of 39% year-on-year (YOY).
Gaurang Desai, Chief Executive Officer of DGCX, said: â€œAccording to a recent annual survey by the World Federation Exchange, currency and commodity derivatives experienced the largest volume growth in 2015 (up 37% and 26% respectively over 2014). Our performance so far indicates that last yearâ€™s trend is continuing into 2016. This phenomenon represents the tangible use of financial exchanges such as DGCX especially when investors are seeking to hedge and mitigate risks amidst heightened volatility in global markets.”
On April 13, DGCX signed MoUs with two of Chinaâ€™s largest banks – the Agricultural Bank of China (ABC)-DIFC and the Industrial and Commercial Bank of China (ICBC). The signing of these pacts paves the way for DGCX to collaborate with both institutions in areas of product development which is a significant milestone as the Exchange continues to grow and develop its Chinese product offering.
Also in the month of April, DGCX together with the Dubai Commodities Clearing Corporation (DCCC) organised a business breakfast briefing for ACTME (The Association of Corporate Treasurers Middle East) which drew attendance from corporate treasurers representing financial and non-financial institutions. The event served as a valuable platform to exchange information and initiate dialogue on the benefits of using financial exchanges such as DGCX to hedge against price fluctuations.
“Following on a strong first quarter, April volumes show that we remain on track with healthy volume growth, increased partnerships with prominent entities, and an effective engagement with a wider group of audience,” Gaurang concluded.