DGCX posts record H1 results, volumes up 44%

DUBAI / WAM

Dubai Gold and Commodities Exchange (DGCX) recorded its best H1 ever in its 13-year history, trading over 11,300,000 contracts so far in 2018, up 44 percent year-on-year (y-o-y). Traded value for the first six months of 2018 breached $250 billion for the first time too. The exchange’s record-breaking performance was sealed following a robust month of trading in June, which saw 2,046,806 contracts traded, up 74 percent from June 2017. June 2018 traded value reached $42.3 billion.
The best performing asset classes this year have been the currencies with the Indian rupee (INR) and the G6 currency futures most prominent. First half INR volumes increased by 22 percent from last year, driven mainly by increasing hedging appetite in volatile markets. Volumes in G6 futures grew 97 percent y-o-y to reach 387,586 contracts. The growth in G6 currency futures was confirmed in June as the DGCX successfully physically delivered a record $404 million upon the contracts expiry. Other notable performers in 2018 include Dubai India Gold, Shanghai Gold and Chinese Yuan.
Les Male, CEO of DGCX, said: “In the first half of 2018 DGCX achieved spectacular growth and major milestones. Not only have we broken our record for the overall volume and value of contracts traded in the first six months of a year, but we’ve also set new highs in terms of Open Interest (OI) on several products.”
DGCX’s OI has climbed with an average of 301,119 contracts open throughout first half showing an increase of 28% over same period in 2017. OI is often seen as a bar-ometer to measure success and underlying strength of an eExchange.
Male added: “While our exceptional results have been bolstered by geopolitical uncertainty throughout 2018, with traders seeking protection and various hedging mechanisms to mitigate their risk, they have also been driven by the Exchange’s ability to enhance liquidity and widen investor participation in both established and new products. The postive response to our recently launched Shari’ah Compliant Spot Gold contract bears testament to this, and demonstrates our initiative towards further asset class diversity on the DGCX.”
Since DGCX launched the world’s only Shari’ah Compliant Spot Gold contract on March 29, it has traded over 520 kilograms of gold worth $22 million.