The Dubai Gold & Commodities Exchange (DGCX) has witnessed an uptick in trading volumes for the month ending April 2019, driven by increased investor interest in Indian Rupee products and euro futures, per a company statement.
Meanwhile, the exchange’s aggregate trading volume grew by double digits compared to the same period last year, crossing over 1,696,877 contracts, valued at $32.29 billion.
As market participants digested the implications of geopolitical tensions in key markets, which led investors to increasingly turn to currency derivatives to hedge and mitigate the impact of volatility, the monthly turnover of DGCX’s products remained consistent.
DGCX’s Rupee Quanto Futures grew in April 2019 by 42 percent year-over-year, with over 1,621,202 contracts traded year-to-date, DGCX said in a statement.
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Building on the standout performance, the DGCX witnessed high volumes in the currency segment, with its flagship euro contract signifying the growth trajectory in the first quarter. More specifically, euro options recorded Average Open Interest (AOI) of 3,574contracts.
Other notable performers on the DGCX last month were Brent Crude Oil Futures and other energy products, which saw a substantial jump in trading volumes year-on-year.
DGCX plans to expand community
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.
The UAE main bourse is also planning to further expand its member community with the launch of MENA’s first exchange-listed Mini-Gold Product in partnership with RAKBANK, which will add another dynamic layer to its product offering.
Commenting on the results, Les Male, CEO of the DGCX, said: “After a strong start to 2019 in which we expanded our portfolio of products and beat previous trading records, we have maintained our momentum into the second quarter. Consistent growth in April’s trading activity in contracts such as the Rupee Quanto Future and Euro indicates that our market participants increasingly rely on the DGCX for hedging and investment purposes, while other developments such as our new connection to an ultra-low latency network demonstrate our ongoing commitment to meet the needs of investors.”