(MENAFNEditorial) Dubai Gold & Commodities Exchange (DGCX) celebrated its 11th anniversary on November 21st, delivering a stellar year-to-date growth of 38%, trading over 18.3 million contracts. Strong Open Interest and growth across its asset classes contributed to this month’s success with monthly overall Open Interest aggregating at 546,999 contracts valued at US$ 8.33 billion. The Exchange also recorded a substantial growth of 48% in November 2016 from last year
On November 11, 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 demonetization.
Indian Rupee products witnessed multiple Open Interest (OI) records across all its contracts achieving the highest ever Average Monthly OI. Indian Rupee futures and Mini Indian Rupee recorded Average monthly OI of 202,516 and 15,396 contracts respectively, whereas Indian Rupee Options and Indian Rupee Quanto Futures recorded Average monthly OI of 17,132 and 305,553 contracts respectively in November 2016.
Gaurang Desai CEO of DGCX said: “As DGCX celebrated its 11th anniversary this month, I am delighted with the consistent growth both in terms of Open Interest and daily volumes traded on the Exchange. Besides achieving the record trading volumes, the record open interest signifies the growing confidence of participants on the exchange and clearing house. It is ideal for participants to use DGCX and DCCC in their trading strategies during the volatile market environment.”
DGCX’s precious metals suite emerged as the best performer in November, with the segment’s overall volumes registering an incremental growth of 114%. Volumes in Gold futures and Dubai India Gold Futures were up by 120% and 113% respectively on month-on-month basis. The contracts also witnessed increased participation with number of participants in Gold futures up by around 9%.
“A key factor was the increasing interest in spread trade between Gold futures and Dubai India Gold futures. The recent announcement to list Shanghai Gold futures, the first Chinese bullion contract to be made available 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 constant engagement with members and continuous evaluation of its existing products are central to DGCX's strategy and it is along these lines that the Exchange introduced the Brent futures along with a unique Spread contract (WTI-Brent Spread) to trade the difference between WTI & Brent crude oil products. Given the huge potential for hydrocarbons in this region, DGCX plans to deepen its presence in the energy segment.
“DGCX’s global reach is expanding and this was recently evident with ICBC coming on board as our sixth Clearing Bank. I can 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.
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