DGCX Trading Volumes Soar to New Highs Amid Volatility

SEATTLE (Scrap Monster): After record-breaking 2016, the Dubai Gold and Commodities Exchange (DGCX) has recorded significant jump in trading volumes during the month of January this year. The rising demand for safe-haven gold assets, amidst global volatility led to jump in exchange volumes. The aggregate trading volumes touched 1.37 million contracts during the first month of the year. The value of traded contracts amounted to $33 billion.

According to sources, various political events across the globe has added to financial market volatility during recent times. The uncertainty on policies to be introduced by the new US administration under Donald Trump and the UK Supreme Court ruling that MP’s are required to vote on triggering Brexit have had significant impact on DGCX’s trading volumes. Consequently, the exchange’s trading volumes spiked to 117,637 contracts, valued at US $ 2.9 billion on January 25^th.

The highest increase in volumes was recorded by the British Pound and Yen futures, which grew by 87% and 757% respectively. DGCX gold futures also reported 56% jump in volumes. The recent positive developments in bilateral ties between India and the UAE resulted in increased interest among customers for Indian products. For instance, Indian Rupee Options contracts witnessed 176% year-on-year growth. Also, Quanto contracts grew by 127% over the previous year. The exchange’s Indian Single Stock futures recorded growth of 29% in comparison with the previous year. In addition, Chinese Yuan futures recorded highest average OI of 436 contracts during January 2017.

Gaurang Desai, CEO of DGCX commented that sustained volatility during entire year 2016 has made investors increasingly aware of the need to channelize their investments in a secure, transparent and regulated market place rather than ending up in losses by creating risky exposure to extremely volatile markets. He forecasts increased demand for derivative products, especially on the back of anticipated global volatility against a backdrop of major political and geographical tensions. Under the given circumstances, DGCX is expected to play an increasingly important role among investors within the region, he added. The exchange will continue to introduce unique products based on market participants’ need so as to increase its foot print by growing its membership base, Desai noted.

It must be noted that the exchange had recorded 36% jump in volumes in 2016, registering its highest annual traded volume. The trade volumes aggregated at 19.7 million contracts valued at $439.5 billion. Also, average daily contract volumes had surged to 76,835 contracts, the highest ever in its eleven years of operation.

DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. The Management team of DGCX comprises senior personnel from the commodities, securities and financial services industries bringing a wealth of experience and expertise to ensure the success of the exchange.