Friday 6 December 2019

DGCX spot gold sees record volumes on trading day

DUBAI, March 31, 2018

The GCC’s first and the world’s only Shari’ah Compliant Spot Gold contract (DGSG), was listed on the DGCX, the region’s largest and most diversified derivative bourse, on March 29. The contract opened with world-record exchange traded Shari’ah Compliant Gold volumes on the first day of trading. 
The product traded volume of 84kg worth $3.56 million, on its opening day. The contract’s launch follows months of planning and preparation for the DGCX.
Speaking on the successful launch, CEO Les Male said: "Usually, the first few days of trading on a new product is a good gauge for us to take note of the investor appetite and interest. In the case of DGSG, it has been positive so far and we are anticipating considerable growth."
"It gives us great confidence and comfort in knowing that DGSG is a product that our market participants want to trade and benefit from. Indications suggest that the product will have a wider appeal throughout the GCC and traditional investment world who would like to access the world’s only Shari’ah Compliant gold contract traded on Exchange," he noted. 
INTL FCStone, the approved market maker for the product, will ensure the optimal level of liquidity is maintained in the marketplace. 
Amanie Advisors, a leading global Islamic Finance advisory firm, have been involved with advising DGCX on the product structure as well as obtaining a Fatwa. 
The DGSG is certified by reputable Sharia scholars and in line with AAOIFI standards (The Accounting and Auditing Organization for Islamic Financial Institutions) as set out by the World Gold Council in 2016.
Male added: "Listing this unique product is a great milestone for DGCX and the wider Islamic Finance industry as it enables the efficient diversification of Islamic investment portfolios through the ownership of Shari’ah compliant gold."
The huge appetite for trading this product also reflects the growing popularity of Shari’ah compliant investments across the globe. Listing Shari’ah Compliant Spot Gold in a dynamic and fast-growing market like the UAE, makes perfect sense as the country is well on its way to becoming the global leader for a diversified and inclusive Islamic finance economy," he added.
DGCX traded over 5.5 million contracts in the first quarter of the year, growing 37 per cent from last year. The Exchange’s best performing products in Q1 were Indian Rupee, G6 Currencies and Shanghai Gold.
The Indian Rupee grew 22 per cent from Q1 2017, while the G6 Currency futures recorded their best start to the year, trading a combined 215,501 contracts in Q1, up 115 per cent from 2017.-TradeArabia News Service

Tags: DGCX | INDIAN RUPEE | Spot gold |

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