DGCX sees record volumes in Q1

DGCX sees record volumes in Q1

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Dubai’s Gold & Commodities Exchange (DGCX) recorded its highest quarterly trading volumes on record after benefiting from volatile markets and fluctuating exchange rates.

The largest derivatives exchange in the Middle East said volumes soared between January and March, up 37% on last year’s first quarter.

Average daily volumes reached 72,306 contracts, a rise of 39%.

Options on the Indian Rupee gained with 80,935 contracts traded, up 217%.

In energy segment – WTI crude oil contracts witnessed an increase of 305%, registering a total of 37,640.

“Global markets have been witnessing exceptional volatility owing to factors such as consistently low oil prices, economic slowdown across the globe and changes in various exchange rates,” said Gaurang Desai, chief executive officer of DGCX.

“This has, however, led investors to adopt a more cautious approach and increasingly make use of exchanges like DGCX that provides effective hedging and risk mitigation mechanisms to ease the financial pressures in times of economic uncertainty."

The exchange recorded 1.95 million contracts in the month of March, growing 59% from last year.

The recently launched Spot Gold contract, a first in the Middle East - allowing investors to buy and sell physical 1 kilo bars on the exchange, recorded the highest monthly physical delivery of 4,160 ounces.

During the month, DGCX’s clearinghouse DCCC expanded its collateral portfolio and started accepting currencies like Euros, British Pound Sterling and Japanese Yen, in addition to UAE Dirhams and US Dollars.

Bank of China joined as the 5th settlement bank for the Exchange, adding to the array of existing banks (ENBD, SCB, HSBC and Bank of Baroda).

"As the exchange continue to grow its product offerings and member base, we remain upbeat about getting past this volume growth in the next quarter," added Gaurang.


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