DGCX contract volumes hit 21.85m, valued over $400 billion

Business Bureau, Gulf Today

Total volumes on the Dubai Gold and Commodities Exchange (DGCX) this year stood at over 21.85 million contracts at the end of November, valued at more than $400 billion.

In November, the DGCX traded 1.54 million contracts, and registered Average Open Interest (AOI) of 299,575 with the Exchange showing 15 per cent growth in AOI in 2019.

The best performing asset class in November was the Indian Rupee (INR) product suite, which registered year-to-date (Y-T-D) volume growth of 17 per cent from 2018 and an AOI increase of 10 per cent. Trading this month was also underpinned by DGCX’s flagship Gold Futures product, which recorded Y-T-D total volume growth of 94 per cent compared to the same period last year, and year-on-year (Y-O-Y) Average Daily Volume (ADV) growth of 452%.

Les Male commented: “The DGCX remains on track to break the annual volumes record we set in 2018 of 22.3 million contracts traded, and close the year on a high note. This attests to our ability to meet the constantly evolving needs of our market participants, and continuously deliver excellence, innovation, and diversified financial instruments. This unique value proposition has not gone unnoticed, as we collected two prestigious awards earlier this month, to which I would like to congratulate every single colleague, member and partner that has been part of the DGCX’s incredible journey so far.”

DGCX picked up two awards earlier this month. It won the ‘Global Exchange of the Year’ award at the Burj CEO awards, and was recognized as ‘Exchange of the Year’ at the FOW Global Investor Mena Awards 2019 for its remarkable growth over the year, in which the Exchange broke numerous records for trading volume, notional value and open interest.

“As we turn our attention to 2020, we will continue to build on what we have achieved this year, further expanding our reach to different markets and increasing the breadth of our product portfolio to meet the hedging and investment needs of our participants across the globe,” added Male.

The Dubai Gold and Commodities Exchange has continued its record-breaking performance this year, registering its best quarter since inception with over 7.98 million contracts traded in the third quarter of 2019, with over 2.37 million contracts traded in September, valued at $41 billion.

The Exchange also recorded a monthly Average Open Interest (AOI) of 410,847 contracts in September, its highest AOI since September 2016. Average Daily Volumes (ADV) in September reached 112,988 per day, up 20% year-on-year.

The success was primarily driven by the DGCX’s Indian Rupee (INR) product suite. Building on its record successes in August, the INR Quanto Futures contract was the standout performer once again, with the  index pricing of the Indian Rupee US dollar currency pair concluding last quarter from July to September with more than 3.78 million contracts traded. INR Mini Futures also performed strongly, registering its highest ever monthly AOI of 122,003 contracts.

DGCX also recorded a sharp uptake in its Energy portfolio last month, with Brent Crude Oil Futures and West Texas Intermediary (WTI) Futures recording growth of 154% and 121% respectively. Meanwhile, the Exchange’s flagship Gold Futures product in September recorded month-on-month (M-O-M) average daily volume growth (ADV) of 12%.

Les Male, CEO of DGCX, commented: “DGCX’s recent record volume growth and open interest records reflect the strength and depth of our offerings, and increased  investor confidence in the Exchange. Last month’s achievements were driven by ongoing geo-political instability, including continued uncertainty surrounding Brexit and the US and China trade war.

DGCX has been recognised as ‘Exchange of the Year’ at the FOW Global Investor Mena Awards 2019 for its remarkable growth, in which it broke numerous records for trading volume, notional value and open interest.

The ‘Exchange of the Year’ winner is carefully selected from a pool of candidates, based on the Exchange’s ability to cater to investors’ demands through derivatives contracts. The award also recognizes outstanding performance and product launches that help differentiate the winning exchange from the rest of its peers.

Les Male said, “Winning this is a huge achievement and testament to the DGCX’s incredible journey of growth over the last twelve months. We continuously strive to deliver excellence, innovation and confidence to our investors and traders, so being recognized for our remarkable performance is hugely gratifying and encourages us to continue our efforts and keep building on our accomplishments.”