Dubai Gold & Commodities Exchange ends 2016 with record jump in volumes

ABU DHABI (Scrap Monster): The Dubai Gold and Commodities Exchange (DGCX) has recorded massive increase in traded volumes in 2016. The exchange closed the year on a high note, recording 36% growth when compared with 2015. DGCX recorded highest traded volumes during the year. The total number of traded contracts touched 19.7 million, valued at $439.5 billion, said the press release. The average daily traded volume amounted to 76,835 contracts per day. The average daily volumes (ADV) touched the highest level in eleven years.

The outperformer during the year was currency segment. The segment recorded 34% year-on-year growth, with Indian Rupee products leading the growth. The Indian Rupee contracts volume recorded 34% rise from the previous year. The traded volume of Options contract totaled 334,823 contracts. The average daily open interest touched 8,963 contracts. The British Pound futures too recorded significant jump in traded volumes during the year. The DGCX recorded its highest Open Interest (OI) of 665,058 contracts.

The DGCX gold products registered 61% growth in 2016. The gold futures registered 29% surge in volumes, whereas traded volume of Gold Quanto reported 158% growth in 2016. The significant jump in traded volumes of gold products indicates that precious metals have high resilience in periods of extreme volatility. The exchange volumes spiked up despite periods of global uncertainty triggered by various events such as Brexit, Indian currency demonetization, the US election results and the recent US Fed rate hikes. Meantime, the traded volume of DGCX energy products jumped higher by 206% during the year.

According to Gaurang Desai, CEO of DGCX, 2016 was a remarkable year for the exchange. The exchange was recently named as the ‘Regional Exchange of the Year 2016’ by Global Investor magazine. The exchange was successful in launching innovative products such as Spot Gold and global Single Stock futures. The ai Gold and Commodities Exchange (DGCX) today signed a Memorandum of Understanding (MoU) with the Chinese Gold and Silver Exchange Society (CGSE) in Hong Kong is expected to help the exchange expand into emerging markets and further develop the precious metals markets in Asia and the MENA region. Also, the exchange had obtained a license from the Shanghai Gold Exchange (SGE) to list Shanghai Gold Futures on its exchange, thereby becoming the first exchange to offer yuan-denominated gold future product outside of China. DGCX will continue to introduce relevant and unique products, boost its efforts to grow the membership base and increase its footprints, Desai added.

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 DGCX.