02/09/2015 05:24 AST
Increased volatility in global markets over the past month has led trading volumes on UAE’s leading derivatives bourse, Dubai Gold and Commodities Exchange, DGCX, to rise considerably, raking in multiple records. The monthly trading volumes on the exchange grew by 35 per cent, trading 1,538,636 contracts, recording an all-time high in two years.
DGCX also registered a year-on-year growth of 67 per cent and year-to-date growth of 18 per cent. The overall Average Daily Volumes (ADV) reached 73,268 contracts in the month of August 2015.
The exchange also recorded the highest average monthly Open Interest (OI) in August, with 91,797 contracts, surpassing the previous high of 78,391 contracts registered last month. An all-time high OI of 125,066 contracts was achieved on August 27th, 2015.
The recent volatility in FX markets also drove substantial volumes on DGCX’s Emerging Markets currency products. The Indian Rupee options contracts garnered significant traction with 21,221 contracts traded in August, in comparison to 9,511 contracts traded in July 2015. The Rupee options contract recorded a new high in ADV, trading 1,011 contracts in August. The Indian Rupee Quanto futures traded 230,493 contracts, up 69 per cent from July, crossing the 1.5 billion US$ mark in terms of traded value. Volumes in Mini Indian Rupee futures touched 142,921 contracts, growing 61 per cent from previous month.
Average Daily Volumes on DGCX’s India Gold Quanto contract also grew by 30 per cent, trading 671 contracts in August 2015. The increased appetite in bullion trading is reflective of how investors and traders use gold as an essential investment and hedging tool in times of economic uncertainty.
Gaurang Desai, founding member and newly appointed CEO of DGCX, said, “Our FX Futures and bullion products are attracting more traders than before as they seek safety in trading and hedging in a well regulated and transparent electronic platform like DGCX.
The Gulf Today
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