DGCX Sees April Volumes Storm Higher, Fueled by Gold, Futures

The Dubai Gold & Commodities Exchange (DGCX) has released its trading volumes for the month ending April 2016, once again showing a sustained YoY growth across its futures and commodities business, according to a DGCX statement.

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The latest tranche of volumes follows an upbeat report out of DGCX last month, which was highlighted by a healthy uptick during Q1 2016. For its part, the trajectory of the DGCX’s volumes has also been higher in every month of 2016 thus far, with April being no exception.

During April 2016, the exchange saw its overall trading volumes cross over the 6.0 million contract threshold, which bested its April 2015 equivalent by 45.0% YoY – moreover, April 2016 also saw an Average Daily Open Interest of 109,487 contracts.

April Highlights

One of the main vehicles of growth at DGCX during April 2016 was across its currencies business, having reported a strong growth of 43.0% YoY (5.7 million contracts YTD) from April 2015. In particular, familiar currency pairs propped up these figures, with euro future pairs soaring to 122,109 during April 2016, an all time high, and a 190.0% growth YoY.

British pound futures also helped lead the charge, surging 154.0% YoY, while South African rand futures jumped 47.0% YoY. As has been the case in previous months, Indian rupee futures exploded 220.7% YoY to 96,940 contracts traded during April 2016, which has been a similar trend in previous months.

DGCX’s Chinese yuan futures also touched all time highs, scoring a monthly volume of 4,245 contracts in April 2016, while the Indian Rupee Quanto threatened all time highs with an ADV of 27,071 contracts. Finally, volumes in US Single Stock futures were also up by 107.0% MoM relative to March 2016.

Moving to commodities, DGCX saw a groundswell of demand for its Spot Gold contracts at a time when gold prices have been much more volatile in previous months. April 2016 saw an increase of trading volumes to the tune of 38.0% MoM from March 2016, with ADV in Gold futures orchestrating a 39% YoY growth from April 2015.

According to Gaurang Desai, Chief Executive Officer (CEO) of DGCX, in a recent statement on the metrics: "Our performance so far indicates that last year's trend is continuing into 2016. This phenomenon represents the tangible use of financial exchanges such as DGCX especially when investors are seeking to hedge and mitigate risks amidst heightened 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 in global markets."