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DGCX trading volumes up 36pc in Q3

DUBAI, October 5, 2015

Dubai Gold and Commodities Exchange (DGCX), a leading derivatives bourse, said its trading volumes in the third quarter of the year grew 36 per cent from the last quarter, with more than 4.1 million contracts.
 
The exchange also saw a year-on-year increase of 29 per cent, trading 1.4 million contracts in September, with continued concerns over Chinese growth and expectations of an upcoming interest rate hike by the US. Federal Reserve having led risk-averse investors to hedge their risks and trade derivatives products on DGCX.
 
The exchange recorded the highest open interest (OI) with 110,145 contracts during the period, growing 143 per cent from last quarter. 
 
DGCX also recorded the highest average daily OI of 160,858 contracts in September. 
 
Gaurang Desai, chief executive officer, said: “Open interest is a key indicator of market confidence in trading DGCX products and we are happy to have achieved so many records in that area.”
 
Meanwhile, the DGCX’s gold segment registered a substantial growth of 71 per cent from Q2 and 20 per cent from previous Q3 last year, trading 132,862 contracts in Q3. 
 
It's Indian rupee portfolio grew 37 per cent from last quarter, reaching 3,887,956 contracts in Q3. 
 
DGCX’s hydrocarbon segment also recorded a growth of 42 per cent in Q3 compared to last quarter. The trading in DGCX’s G6 currency portfolio saw a significant jump in Q3, registering a 71 per cent growth compared to Q3 last year.
 
“Global markets endured turbulent times last quarter which made investors realise the significance of using a regulated platform like DGCX to hedge and manage their price exposure, and this is evident from the  volume growth witnessed in our gold, currency and energy products," said Desai.
 
"DGCX is the only exchange in the Middle East to offer electronic trading across multiple asset classes. This is key as it facilitates capital efficiency and cross pollination amongst different products – equipping investors with various hedging and risk management instruments to thrive in uncertain times,” it said.
 
The newly launched products which include India Gold Quanto futures,  Indian Rupee Quanto Futures and Mini Polypropylene futures, have been positively accepted by the market and has contributed to 18 per cent of the exchange’s total volumes in Q3, said the statement.
 
The year-to-date volumes also witnessed an increase of 19 per cent with currency and hydrocarbon segments driving majority of the volumes, up by 22 per cent and 58 per cent respectively.
 
“Looking ahead to the next quarter, our focus will primarily be on two areas - deepening our membership pool and diversifying our product offering. While doing so, we want to ensure positive synergies exist between these areas. Our product pipeline will revolve around an ‘inside out’ and ‘outside in’ approach which means we will aim towards launching regionally relevant products for global investors and globally relevant products for regional investors," said Desai.
 
"We have an interesting mix of products which we look forward to launching this year and these include a India Silver Quanto contract, a Mini sized WTI contract and more products in equity and currency space,” he added. - TradeArabia News Service



Tags: DGCX | trading | volume |

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