The Dubai Gold & Commodities Exchange (DGCX) has reported its trading volumes for the month ending March 2017, reiterating a strong YoY climb across its futures and currency business, per a company statement.
Following the triggering of Article 50 and the formal start of the Brexit process, the average daily volumes (ADV) of DGCX’s product suite touched a strong milestone of 61,471 contracts a day in March 2017, signifying increased interest and liquidity.
Meanwhile, the exchange’s aggregate trading volume grew by double digits compared to the same period last year, crossing over 1.4 million contracts, valued at $33.5 billion, 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 in the first quarter. More specifically, ADV on Indian rupee options registered strong year-on-year growth of 68 percent in Q1 2017.0
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Also in DGCX’s currency segment, Indian rupee options jumped to their highest monthly average open interest of 30,174 contracts, while Sensex futures recorded the second highest monthly average open interest of 1,164 contracts last month.
DGCX also registered impressive year-on-year growth across pound and yen futures which rose 157 percent and 369 percent respectively. In addition, DGCX’s Canadian dollar futures saw a year-on-year advance of 188 percent while Swiss franc contracts added 93 percent growth in comparison to the same period last year.
Commenting on the exchange’s performance, Gaurang Desai, CEO of DGCX, said: “The brisk trading pattern we have witnessed in the past month reiterates that in times of volatility and uncertainty investors flock to regulated and transparent markets like DGCX to hedge against rapid price movements especially in global currency pairs.”
“If you observe the trading trends in the last few months, it is apparent that the European elections, policy decisions in the US and the initiation of formal Brexit negotiations, has created a lot of uncertainty in the minds of investors, which also then impacts equity markets and causes them to underperform. In times like these, derivatives markets play a pivotal role in protecting investors and traders by providing them with opportunities to hedge their risk,” he added.