DGCX closes 2021 with a total trade valued at $149.676 billion

The Dubai Gold and Commodities Exchange (DGCX) on Friday reported its full-year market statistics. During 2021, the exchange recorded a yearly AOI a sum of 1,985,584 contracts and traded 7,076,350 contracts during the year - with the total value of the contracts amounting to $149.676 billion.

The DGCX’s best performing product in 2021 was its Indian Rupee Options (DINRO) Futures Contract, which traded up 1,233 per cent year-on-year (Y-O-Y).

As part of its broader cross-border collaboration efforts, the DGCX also signed landmark agreements with the S & Royal Group Mongolia to explore future business and trade opportunities, as well as the Financial Markets Regulatory in Sudan, to strengthen the gold market across Africa.

Additionally, the DGCX also signed a strategic MoU with Victoria Falls Stock Exchange (VFEX) aimed at supporting with the development of a clearing and settlement commodities exchange in Zimbabwe.

Trading was particularly busy in December, with trade volumes of over 727,784 million contracts traded during the month, led by the DGCX’s Indian Rupee Future Contract.

Les Male, CEO of DGCX, said, “During 2021, the DGCX diversified its product portfolio, introducing new contracts such as the PKR Futures Contract as well as expanding our footprint into the Israeli market. We also continued to focus on upgrading our system capabilities and technology infrastructure during the year - and our planned integration with Nasdaq is set to complete in Q2, 2023.”

“As we begin 2022, we continue to actively engage several stakeholders and will soon launch a number of innovative future contracts that will create value for market participants and further consolidate our position in the Middle East.”

DGCX closed the year with industry plaudits, being named as ‘Exchange of the Year - Middle East and Africa’ at the prestigious FOW Global Investor Mena 2021 Awards for a fourth year in a row.

Additionally, the DCCC, a wholly owned subsidiary of DGCX providing clearing and settlement services was also awarded the ‘Clearing House of the Year - Middle East and Africa’ by the FOW Global Investor Mena 2021 Awards, in recognition of its clearing and settlement services, which provided resiliency and stability to financial markets.

DCCC is the only Central Counter Party in the Middle East that offers clearing services across multiple asset classes such as Currencies, Base and Precious Metals, Hydrocarbons and Equity derivatives, both index and single stock.

During 2021, DGCX received its permit from the Israel Securities Authority (ISA), enabling qualified Israeli corporations who trade on proprietary basis to become members of the DGCX and to use its trading services and platforms.

In April, the DGCX Group launched its Pakistani Rupee (PKR) Futures Contract, the first of its kind on any regulated exchange in the world. To date, the contract successfully traded a total of 8,765 lots valued at $109.86 million, showcasing the demand from market participants to diversify their exposure to the Pakistani market.

At the forefront of developing and shaping the Islamic finance sector, the DGCX has also been actively involved in partnerships with leading institutions to introduce more Islamic products to the Exchange, including its recent partnership with Global Islamic Financial Services.

As part of its community outreach, the DGCX also recently partnered with Ajman University to help foster the development of finance professionals by committing to share knowledge, co-host educational events, and provide access to academic and professional platforms.

During the year, the DGCX was also one of many exchanges around the globe to raise awareness for women’s empowerment - by celebrating the 7th annual ‘Ring the Bell for Gender Equality’ ceremony on International Women’s Day.

Trading during October was underpinned by a spike in the DGCX Group’s Indian Rupee (INR) suite, as market participants looked to hedge their risk amid market volatility. Notably, the DGCX Group’s Weekly INR-US Dollar (USD) Futures Contract traded strongly, registering a Y-O-Y ADV growth of 119.19 per cent. The DGCX’s Mini INR Futures Contracts also drew a Y-O-Y ADV growth of 85.21 per cent, compared to the same period last year.

There was also sustained interest in the DGCX’s West Texas Intermediary (WTI) Futures Contract during the month, as oil prices soared with US crude hitting a seven-year high during the last week of October. The WTI Futures Contract registered a year-on-year (Y-O-Y) Average Daily Volume (ADV) growth of 44.73 per cent, compared to the same period last year.

Trading across the DGCX’s precious metals portfolio was also strong during the month, with the exchange’s flagship Gold Futures Contract recording a Y-O-Y ADV growth of 32.62 per cent compared to the same period last year.