DGCC currency volumes see uptick in August as single stock futures pick up steam
Source: DGCX , Author: Posted by BI-ME staff
Posted: Thu September 7, 2017 10:50 am

UAE. Despite the summer being a typically slow period for markets, the Dubai Gold and Commodities Exchange (DGCX) witnessed an uptick in trading volumes in key products, predominantly driven by increased investor interest in the Exchange’s offerings in Euro Futures, INR Options and Indian Single Stock Futures.

The Exchange has strategically used the summer months to roll-out several initiatives focused on product development and partnerships aimed at strengthening its presence in the regional financial markets.

Recently, DGCX, the only regulated gold exchange in the Middle East, announced its plan to launch the region’s first Sharia-compliant Spot Gold contract in partnership with a Saudi Arabian conglomerate, Ayedh Dejem Group. The Exchange also inked a pact with Amanie Advisors which is a leading global consultancy specialising in Islamic Finance. These partnerships are aimed at developing Islamic products for the DGCX marketplace and will mark the Exchange’s entry into the Islamic Finance sector.

The DGCX’s volume highlights for the month of August include: Euro futures traded its highest volume since January 2013, showing month-on-month growth of 77% and year-on-year growth of 19%. DGCX’s Indian Single Stock Futures witnessed strong growth too, with volumes growing by 583% compared to the same period last year. With investors looking for protection after a period of low volatility Indian Rupee Options volume surged, leading it to mark the year-on-year growth of 40%.

Gaurang Desai, Chief Executive Officer of the Dubai Gold and Commodities Exchange, commented: “As a multi-asset Exchange, we endeavour to provide our market participants with access to a number of products for their investment, hedging and arbitrage needs. The increased trading activity in contracts like the Euro and Indian Single Stock futures is an indication that our market participants truly appreciate and are increasingly becoming reliant on a wider range of DGCX products.”

Looking ahead, the DGCX is looking to launch their Sharia-compliant Spot Gold contract later this year. Also, on the heels of the successful addition of ‘Calendar spreads’ on Gold and G6 Currency contracts in June, the Exchange will introduce calendar spreads in WTI and Brent contracts promoting its Energy products portfolio.

Gaurang added: “At DGCX, we have embarked on a path to broaden our reach. With Dubai already known as the ‘City of Gold’, the recent developments in global geopolitics and increased volatility in gold has resulted in an amplified appetite to hedge and invest in the product. The upcoming Sharia Spot Gold contract will not only enhance our product offerings but also meet the varied trading requirements of our customer base within the UAE, Saudi Arabia and the wider GCC region.”

Photo Caption: Gaurang Desai, Chief Executive Officer of the Dubai Gold and Commodities Exchange

ABOUT DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 200 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities.

For more information, please visit www.dgcx.ae

DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognized as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 90 clearers from across the globe.

For more information, please visit www.dccc.co.ae

 

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