Understanding the Embedded Finance Landscape

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

by Jeff Patterson
  • 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).
DGCX SENSEX April Volumes up 41% MoM: Currency Futures, Metals Driving Growth
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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 across Forex 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.

dgcx

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 across Forex 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.

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