DGCX Caps Off January With Rising Trading Volumes Buoyed by Derivatives

Fueled by rising EM volatility and derivatives, the DGCX managed to secure a 15.0% YoY growth in volumes during January

The Dubai Gold & Commodities Exchange (DGCX) has released its trading volumes for the month ending January 2016, having started out the year with an upbeat performance across its equities business, according to a DGCX statement.

In particular, the exchange disclosed its January 2016 volumes that were 15.0% higher YoY than its 2015 counterpart – this was reflective of an increasingly high frequency of derivatives and emerging market (EM) currencies. For example, Indian rupee volumes during January 2016 exploded by a factor of 352% YoY from January 2015.

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The DGCX also recorded a strong open interest in January 2016, corresponding to a 26.0% jump YoY from January 2015. This growth can be explained in part by the mounting economic volatility across EM, which seems to have already spiked in the new year.

According to Gaurang Desai, Chief Executive Officer (CEO) of DGCX in a recent statement on the monthly volumes: “Against the backdrop of global economic turmoil and a volatility across market segments, investors and corporates need to be aware of the important role derivatives futures exchanges such as DGCX play as a regulated platform to hedging their risk and optimally manage their balance sheets.”

“With crude oil prices falling below USD30 per barrel in January, it is becoming increasingly important for economies, particularly oil reliant ones, to look at ways of hedging their risk and managing their fiscal deficits,” he added.

The recent January volumes follow on the heels of a robust year-end financial statement from the DGCX. For the year ending December 31, 2015, the exchange reported its highest ever volumes of 14.5 million contracts, good for a YoY increase of 23.0% from the 2014 period. The mounting contracts volume was fueled by a widespread growth across its derivative and commodities business, namely in regards to its newly launched precious metals offering, in conjunction with yuan futures.

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