The Dubai Gold & Commodities Exchange (DGCX) has recorded a strong start to 2016 with January figures showing an Open Interest increase of 26 per cent against the same month in 2015.

The growing Open interest on the exchange underlines the opportunity that DGCX is presenting to regional investor population as a fully-regulated platform that can be used to hedge risk in the face of continuing economic volatility, a statement said.

January numbers reflect the increasing use of derivatives to hedge foreign exchange (FX) volatility particularly in emerging market currencies such as the Indian Rupee and South African Rand. Market participants appreciated the cost effective investment mechanism provided by Indian Rupee Options.  Rupee Options volumes grew by 352 per cent in January 2016 vs. January 2015.

The recently launched Dubai Spot Gold Contract traded 1516 kg in January 2016; the DCCC has also facilitated delivery of 73 kg of physical gold till date. Jewellers and other bullion participants have started to utilize Dubai Spot Gold to lock-in the price and manage physical supply chain needs using the unique roll-over mechanism. Flight to safety also saw the India Gold contract volume double during January 2016.

On January 15, DGCX launched its equity product segment by offering 15 Single Stock futures on blue chip USA stocks like Facebook, Google, Apple, JP Morgan and Microsoft. 10 Indian stocks were part of this launch and included Axis Bank, Tata Motors, TCS, Infosys, Reliance, HDFC Bank, SBI, ICICI, L&T and Maruti Suzuki.

Gaurang Desai, CEO of DGCX, said: “Against the backdrop of global economic turmoil and volatility across market segments, investors and corporates need to be aware of the important role derivatives futures exchanges such as DGCX play as a regulated platform to hedging their risk and optimally manage their balance sheets.”

“With crude oil prices falling below $30 per barrel in January, it is becoming increasingly important for economies, particularly oil reliant ones, to look at ways of hedging their risk and managing their fiscal deficits,” he added. – TradeArabia News Service