Emergence Of The Asian Exchanges: DGCX Announces 10 Million Contracts YTD

As far as new and upcoming trading venues are concerned, Asia has played host recently to many fledgling exchanges, which are now beginning to demonstrate their strong start and established position in their respective markets.

The Dubai Gold and Commodities Exchange (DGCX) is a case in point, today, having announced that its volumes have passed the 10 million mark in terms of contracts, cumulatively since the beginning of the year.

Year-to-date volumes for 2013 represent a record for the exchange, insofar as that the 10 million contracts mark has not been surpassed in the history of the exchange until now.

The milestone, reached on August 23 this year, was achieved in a total of 164 trading days. Total 2013 volumes stood at 10.37 million contracts at the end of August, a rise of 80% from the previous year.

According to the DGCX, these volumes were achieved as a result of brisk trading in August. Trading climbed 23% in August from last year to total 1,159,293 contracts, representing a value of $34.08 billion.

Currencies, which were the mainstay of growth, rose 28% year-on-year to reach 1,124,507 contracts. Year-to-date volumes in the segment grew by 89%, with the DGCX's Indian rupee contract remaining a mainstay of currency trading activity at the venue.

Indian rupee futures continued to post steady volumes expansion, increasing 16% from last year to aggregate 1,011,360 contracts in August. Year-to-date (YTD) volumes in the product surged 72%. Although, the exchange is heavily reliant on the Indian rupee contract, euro futures rose in August by 115% compared to last year.

Silver was the stand-out performer in the precious metal segment with a year-on-year growth of 31%.

Gary Anderson, CEO of DGCX made a statement on behalf of the company that: "Surpassing the 10 million contract mark this month further reinforces DGCX's profile as one of the fastest growing exchanges in the world."

"The sustained growth of our emerging market contracts at a time of such high market Volatility has been driven by the Exchange's ability to offer participants some of the best tools in the region to manage currency and commodity price risk. The development of a strong offshore platform for emerging market products remains a key strategic focus for DGCX" concluded Mr. Anderson.