The Dubai Gold and Commodities Exchange (DGCX) has reported its metrics for the month ending July 2015, showing robust YoY growth from the same period last year, according to a DGCX statement.
In particular, the DGCX reported average daily volumes (ADV) of 49,673 contracts during July 2015, corresponding to a 15% YoY jump from July 2014. The exchange’s year YTD volumes also notched a growth of 11% YoY from the same period last year in 2014, trading a sum of 7.5 million contracts.
Furthermore, the DGCX also yielded its highest average monthly open interest (OI) during July 2015, having come in at 78,391 contracts, besting a previous high of 59,688 contracts in March 2015.
Overall, the 31.3% jump in OI from March was fueled by strong performance in the DGCX’s emerging markets contracts, namely amongst its newly launched Quanto products.
Quanto Products Shine
The DGCX witnessed a standout performance across its volumes in the precious metal segment, which jumped on the availability of its Indian Gold Quanto futures. The Gold Quanto affords investors access to the Indian gold market without inherent exposure to movements in the USD/INR, a major draw amongst investors in this realm who were reticent to take on additional volatility.
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Consequently, the popularity of the Quanto products on the DGCX has collectively accounted for 13% of the exchange’s July volumes, which is reflective of the popularity of the new contracts amongst the regional foreign exchange (FX) and Bullion trading community.
Finally, the ongoing volatility in the energy sector, namely oil, has seen higher than normal volumes at the DGCX. YTD, the exchange has seen a 66% YTD increase in the trading of WTI futures, relative to the same period in 2014 – the DGCX has revealed that it is eying a new expansion to its energy trading capabilities, which will likely be announced soon.
Our newly launched Quanto products are generating a lot of interest and increased participation from market participants
According to Gaurang Desai, Interim of CEO of DGCX, in a recent statement on the metrics, “Following the exceptional H1 performance, we are delighted to witness another month of strong trading. Our newly launched Quanto products are generating a lot of interest and increased participation from market participants.”
“These contracts’ unique value proposition provides significant arbitrage and hedging opportunities from exchange rate fluctuations and makes them an effective risk management tool for offshore investors looking to gain exposure into one of the world’s largest emerging markets. As we enter the second half of this year on a promising note, our focus remains on introducing more products that are relevant to investors within UAE and larger GCC region, and expanding our member base and reach internationally,” he added.
Last week, the DGCX made headlines after Menacorp, a leading brokerage firm operating out of Abu Dhabi in the United Arab Emirates (UAE), launched a MetaTrader 5 (MT5) online trading platform for its customers wishing to trade on the DGCX.