The Dubai Gold & Commodities Exchange (DGCX) has witnessed an uptick in trading volumes for the month ending October 2017, driven by increased investor interest in euro, Japanese yen and sterling futures, per a company statement.
As market participants digested the implications of geo-political tensions in key markets, which led investors to increasingly turn to derivatives to hedge and mitigate the impact of volatility, the monthly turnover of DGCX’s G6 Currency portfolio touched a strong milestone in October 2017, recording a 225 percent year-on-year increase.
The exchange said in a statement that euro and pound sterling futures showed their highest monthly Average Open Interest (AOI) at 2077 and 1275 contracts respectively. Taking a year-to-date (YTD) prospective, trading volumes in the two currency pairs registered impressive growth of 112 percent and 36 percent compared to the comparable period in 2016.
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Japanese yen futures witnessed strong growth too, with volumes expanding by 205 percent year-on-year compared to the same period last year. With investors looking for protection after a period of low volatility, the Swiss franc, Canadian dollar, and Australian dollar surged, leading the major currencies to mark year-on-year growth of 438 percent, 458 percent and 95 percent respectively.
Meanwhile, the exchange’s Indian Single Stock Futures (SSF) grew by ten-fold compared to the same period last year, having traded an aggregate 877,218 contracts this year and crossing over 17,959 contracts on October 25th. In addition, the bourse recorded its highest ever daily volume in AOI for the BSE Sensex Index Futures.
Commenting on the exchange’s performance, Gaurang Desai, CEO of DGCX, said: “As the largest and most diversified bourse in the Middle East, we are committed to providing our traders and members with a range of trading options across different asset classes to manage their risk effectively in times when they most need it. We are pleased to see our G6 currency portfolio achieve stronger trading volumes this month, as this demonstrates that DGCX currency derivatives products are increasingly used by traders for hedging and risk management purposes. We will continue to push forward with our efforts to provide our market participants with a diverse array of products and tools so that they are in a better position to take advantage and protect themselves during volatility spikes.”
Recently, DGCX, the only regulated gold exchange in the Middle East, announced its plan to launch the region’s first Sharia-compliant Spot Gold contract.