The Dubai Gold & Commodities Exchange (DGCX) witnessed an uptick in FX trading volumes for the month ending October 2020, driven by increased investor interest in Euro and British products.
DGCX’s G6 currencies portfolio recorded year-on-year volume growth of 378 percent compared to the same period last year. This surge was led by high levels of volatility, coupled with the need to manage counter-party risk which strengthened the value proposition of exchange based forex futures trading.
British Pound and Euro Futures Contracts were the standout performers, registering year-to-date Average Daily Volume (ADV) growth of 67 percent, and 392 percent, respectively. The recently launched contracts gained traction in the market as investors sought to take the advantage of the trading opportunities that they offered.
The UAE main bourse has maintained its momentum into the second half of the year, as it continues to provide investors with a wide range of derivative products that allow them to manage their risk effectively.
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In addition, DGCX successfully launched the region’s first FX Rolling Futures Contracts (Euro, Pound Sterling and Australian Dollar), whilst expanding the range of Indian Rupee/US Dollar contracts with the launch of a Weekly INR-US Dollar Futures Contract.
Many of DGCX’s products are geared towards offshore investors; that is why it often sees spikes of trading activity in Indian referenced contracts. The demand is likely based on the usage of these products for hedging purposes when financial markets are experiencing sharp volatility.
Les Male, CEO of DGCX, said: “During the month of October, we recorded strong interest in our currency and precious metal products, that not only reiterated the strength of our offerings, but our ability to enhance market participants’ liquidity and hedge risk. As the DGCX approaches its 15th year anniversary milestone this month, we are well placed to continue our strong growth trajectory, as well as provide our member base with effective products that help meet their hedging and trading needs. Our priority continues to be providing our members with a wide range of innovative products that help to manage their risk effectively – at a time when they need them the most.”