Tuesday 03, April 2018 by Nabilah Annuar

DGCX’s Shari’ah Compliant Spot Gold signals healthy investor appetite

The GCC’s first and the world’s only Shari’ah Compliant Spot Gold contract (DGSG), was listed on the DGCX on 29 March 2018.

The contract opened with world-record Exchange traded Shari’ah Compliant Gold volumes on the first day of trading. The product traded volume of 84 kgs worth $3.56 million, on its opening day. The contract’s launch follows months of planning and preparation for the DGCX, the region’s largest and most diversified derivative bourse.

Commenting on this performance, Les Male, CEO of DGCX, said, “Usually, the first few days of trading on a new product is a good gauge for us to take note of the investor appetite and interest. In the case of DGSG, it has been positive so far and we are anticipating considerable growth. It gives us great confidence and comfort in knowing that DGSG is a product that our market participants want to trade and benefit from. Indications suggest that the product will have a wider appeal throughout the GCC and traditional investment world who would like to access the world’s only Shari’ah Compliant gold contract traded on Exchange”

INTL FCStone, the approved market maker for the product, will ensure the optimal level of liquidity is maintained in the marketplace. The DGSG is certified and in line with AAOIFI standards (The Accounting and Auditing organisation for Islamic Financial Institutions) as set out by the World Gold Council in 2016.

DGCX traded over 5.5 million contracts in the first quarter of the year, growing 37 per cent from last year. The Exchange’s best performing products in Q1 were Indian Rupee, G6 Currencies and Shanghai Gold.

The Indian Rupee grew 22 per cent from Q1 2017, while the G6 Currency futures recorded their best start to the year, trading a combined 215,501 contracts in Q1, up 115 per cent from 2017.





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