Monday 04, September 2017 by Jessica Combes

DGCX currency volumes see August uptick

 

The Dubai Gold and Commodities Exchange (DGCX) witnessed an uptick in trading volumes in key products, predominantly driven by increased investor interest in the Exchange’s offerings in Euro Futures, INR Options and Indian Single Stock Futures, despite the summer being a typically slow period for markets.  

The Exchange has strategically used the summer months to roll-out several initiatives focused on product development and partnerships aimed at strengthening its presence in the regional financial markets. 

“As a multi-asset Exchange, we endeavour to provide our market participants with access to a number of products for their investment, hedging and arbitrage needs. The increased trading activity in contracts like the Euro and Indian Single Stock futures is an indication that our market participants truly appreciate and are increasingly becoming reliant on wider range of DGCX products,” said Gaurang Desai, Chief Executive Officer of the Dubai Gold and Commodities Exchange. 

Recently, DGCX, the only regulated gold exchange in the Middle East, announced its plan to launch the region’s first Shari'ah-compliant Spot Gold contract in partnership with a Saudi Arabian conglomerate, Ayedh Dejem Group. The Exchange also inked a pact with Amanie Advisors which is a leading global consultancy specialising in Islamic finance. These partnerships are aimed at developing Islamic products for the DGCX marketplace and will mark the Exchange’s entry in to the Islamic finance sector.

The DGCX’s volume highlights for the month of August include euro futures traded its highest volume since January 2013, showing month-on-month growth of 77 per cent and year-on-year growth of 19 per cent. DGCX’s Indian single stock futures witnessed strong growth too, with volumes growing by 583 per cent compared to the same period last year. With investors looking for protection after a period of low volatility Indian rupee options volume surged, leading it to mark year-on-year growth of 40 per cent. 

Looking ahead, the DGCX is looking to launch their Shari'ah-compliant Spot Gold contract later this year. Also, on the heels of the successful addition of ‘Calendar spreads’ on Gold and G6 Currency contracts in June, the Exchange will introduce calendar spreads in WTI and Brent contracts promoting its Energy products portfolio.

“At DGCX, we have embarked on a path to broaden our reach. With Dubai already known as the ‘City of Gold’, the recent developments in global geopolitics and increased volatility in gold has resulted in an amplified appetite to hedge and invest in the product. The upcoming Shari'ah Spot Gold contract will not only enhance our product offerings, but also meet the varied trading requirements of our customer base within the UAE, Saudi Arabia and the wider GCC region,” added Gaurang.

Features & Analyses