UAE- DGCX records strong start to 2016 with launch of Equity futures

2/4/2016 8:23:51 AM

(MENAFN- Emirates News Agency (WAM))

DUBAI 4th February 2016 (WAM) -- The Dubai Gold and Commodities Exchange (DGCX) has recorded a strong start to 2016 with January figures showing an Open Interest increase of 26% against January 2015. The growing Open interest on the exchange underlines the opportunity that DGCX is presenting to regional investor population as a fully-regulated platform that can be used to hedge risk in the face of continuing economic volatility.

January numbers reflect the increasing use of derivatives to hedge foreign exchange (FX) volatility particularly in emerging market currencies such as the Indian Rupee and South African Rand. Market participants appreciated the cost effective investment mechanism provided by Indian Rupee Options. Rupee Options volumes grew by 352% in January 2016 as against January 2015.

The recently launched Dubai Spot Gold Contract traded 1516 kgs in January 2016 the DCCC has also facilitated delivery of 73 kgs of physical gold till date. Jewelers and other bullion participants have started to utilize Dubai Spot Gold to lock-in the price and manage physical supply chain needs using the unique roll-over mechanism. Flight to safety also saw the India Gold contract volume double during January 2016.

On January 15 DGCX launched its equity product segment by offering 15 Single Stock futures on bluechip USA stocks like Facebook Google Apple JP Morgan and Microsoft. 10 Indian stocks were part of this launch and included Axis Bank Tata Motors TCS Infosys Reliance HDFC Bank SBI ICICI L&T and Maruti Suzuki.

Gaurang Desai CEO of DGCX said: "Against the backdrop of global economic turmoil and a volatility across market segments investors and corporates need to be aware of the important role derivatives futures exchanges such as DGCX play as a regulated platform to hedging their risk and optimally manage their balance sheets. With crude oil prices falling below USD30 per barrel in January it is becoming increasingly important for economies particularly oil reliant ones to look at ways of hedging their risk and managing their fiscal deficits."

WAM/AAMIR

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