DGCX SENSEX April Volumes up 41% MoM: Currency Futures, Metals Driving Growth

The Dubai Gold & Commodities Exchange (DGCX) has announced its SENSEX volumes for the month ending in April, highlighted by a 41% growth MoM with a total of 819,941 contracts traded (valued at $24.69 billion), according to a DGCX statement.

The DGCX is the region’s first derivatives exchange having achieved widespread success thus far into 2014, with staunch gains across its currency futures and precious metals contracts. Following a robust March campaign, the DGCX traded a total of 819,941 SENSEX Futures contracts in the month of April, which corresponded to a 41% growth MoM.

SENSEX Futures Appetite Grows

The SENSEX futures contract is based in part off the blue chip stock index of the Bombay Stock Exchange (BSE) – this service grants investors exposure to emerging world economies. There is a clear demand for heightened exposure into this region, notably in reverence to the explosion of Mini-Indian Rupee contracts earlier this year. As for April however, the largest gains were driven by record piercing volumes across the BSE.

In particular, April 23, 2014 capped a lifetime high in SENSEX trading, as benchmark BSE volumes hit 22,869 contracts – volumes are at historic levels, soaring due to the Indian elections. According to Mohsin Jameel, CEO of Tradenext, in a statement on the BSE volume peaks, "Markets have reacted positively to the proposed BJP-alliance – the pro-business party has been wooing the corporate community, however with an uptake in new voters their might be a last minute shift in power."

Precious Metals and Currency Futures Notch Strong Growth

While Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term across Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term markets has been highly muted as of late, precious metals seemed to experience a resurgence in trading volumes in April. Indeed, the average daily volumes (ADV) for gold futures on the DGCX has now risen 5% YoY since April 2013 – this correlated to 39,738 contracts in April 2014. Conversely, silver futures exploded 637% YoY to 7,385 contracts in April 2014.

In terms of currency pairs, the best performers were the Yen and Canadian Dollars Futures, which experienced a volume growth of 80% and 20% respectively since January 1, 2014.