DGCX July Volumes Signal Continued Momentum Post Brexit

Precious metals help buoy volumes at DGCX as Brexit-induced volatility abated during July.

The Dubai Gold & Commodities Exchange (DGCX) has reported its trading volumes for the month ending July 2016, reiterating a strong YoY climb across its futures and commodities business, per a company statement.

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July 2016 saw a number of benchmarks, including the DGCX’s highest ever-daily volume with 176,645 contracts. The results of this month follow a very volatile June in which the DGCX, like other exchanges, experienced a spike in its figures due to the Brexit referendum.
In terms of specifics, the exchange saw its overall trading volumes cross over 11.0 million contract threshold for 2016 thus far, which was 47.0% higher YoY relative to the same point in July 2015. Moreover, July 2016 saw a total of 1,674,268 contracts traded, also setting a new record in Average Open Interest (OI) of 257,249 contracts in July 2016.

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July Highlights

The primary driver of volumes at DGCX during July 2016 was across its commodities and precious metals business. In particular, gold futures contracts saw an average of 2,155 contracts per day in July 2016, constituting a YoY growth of 61.0%. This was further reinforced by a steady uptick in average daily volume (AFV) in DGCX’s Gold Quanto, which soared triple digits (170.0% YoY) to 1,389 contracts in July 2016.

British pound futures continued to see heightened volumes in July, an obvious result of the aftershocks of the Brexit vote – YoY the ADV was up 279.0% YoY. In terms of other currencies, Indian rupee contracts also saw a new record of 144,184 contracts in July 2016. Additionally, ADV across rupee futures was also up by 27% YoY in July 2016, yielding an average of 45,842 contracts in the month from July 2015.

According to Gaurang Desai, CEO of DGCX, in a recent statement on the metrics: “We are pleased to set a number of records this month specially on the Open interest front, which reflect the sustainable confidence on the DGCX platform. Open Interest is an indication of the resident interest and liquidity, and also demonstrates the robustness of our trading platform.”

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