The Dubai Gold and Commodities Exchange (DGCX) has reported its monthly trading volumes for January 2017, which saw positive flows across various segments, including precious metals and Indian rupee contracts.
Following Trump’s inauguration and his administration’s immediate policy changes, Average Daily Volumes (ADV) in DGCX’s product suite touched a record 117,637 contracts a day in January, valued at US$ 2.9 billion.
Meanwhile, overall trading volume grew by double-digits compared to the same period last year, crossing over 1.37 million contracts in January 2017, DGCX said in a statement.
Building on the standout performance, the DGCX witnessed high volumes in the currency segment, with its flagship Indian rupee contract signifying the growth trajectory. More specifically, ADV on Indian rupee options and Quanto contracts registered strong year-on-year growth of 176% and 127% respectively.
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Also in DGCX’s currency segment, Chinese yuan futures jumped to their highest monthly Average Open Interest of 436 contracts in January 2017. DGCX also registered impressive year-on-year growth across pound and yen futures which rose 87% and 757% respectively.
In addition, DGCX’s Indian Single Stock futures saw a year-on-year advance by 29% in comparison to the same period last year.
Sustained volatility on Trump’s woes
On the commodities front, the uptick in precious metals prices was the main vehicle of growth at DGCX during January 2017 after Trump’s policies along with the UK Supreme Court’s ruling on Brexit have caused financial market volatility. Additionally, signs of improvement in Asian demand in the lead up to the Chinese New Year had a positive impact on the precious DGCX gold futures which witnessed robust trading activity with 56 percent growth in the month prior.
Commenting on the exchange’s performance, Gaurang Desai, CEO of DGCX, said: “Last year, we witnessed sustained volatility, which emphasized to investors the value of transacting in a secure, transparent and regulated market place to hedge their risks and exposure against rapid price movements. Global markets are likely to continue experiencing sharp bouts of volatility throughout 2017 against a backdrop of major political developments and anticipated instability. We expect increased demand for derivative products for hedging and investment purposes and we are confident that DGCX will continue to play an increasingly important role for investors within the region.”
“Keeping innovation at the core of the DGCX is key. We are optimistic that the current product pipeline for the year will enable the DGCX to further improve its growth and development milestones,” he concluded.