The Dubai Gold and Commodities Exchange (DGCX) released a statement this Monday announcing that is had its best first half of a fiscal year (H1) since launching in 2005. DGCX saw a record number of contracts traded on its facilities with traded value also reaching the highest levels the firm has ever seen.
In the first half of 2017, DGCX saw approximately 7.85 million contracts traded on its exchange. This year, that number grew drastically to 11.30 million, representing a year-on-year increase of 44 percent.
As a result of this growth, the firm was able to increase its total traded value for H1 to record levels. For the first time in its history, DGCX surpassed $250 billion in traded value for a half-year period. The company did not list its total traded value for H1 in 2017, so it is difficult to ascertain what this growth looked like from a year-on-year perspective.
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Final push in June
DGCX’s impressive H1 of this year was in part driven by a final burst of trading activity this June. The firm saw 2,046,806 contracts, with a value of $42.3 billion, traded on its exchange in June, up 74 percent against June of last year.
Growth was also partly driven by the introduction of new products. For example, in March of this year, DGCX introduced spot gold contracts that are compliant with Shari’ah law. Since then, investors have traded 520 kilograms of gold with an approximate value of $22 million.
Commenting on the exchange’s results, Les Male, DGCX’s CEO, said: “While our exceptional results have been bolstered by geopolitical uncertainty throughout 2018, with traders seeking protection and various hedging mechanisms to mitigate their risk, they have also been driven by the Exchange’s ability to enhance liquidity and widen investor participation in both established and new products.