Total trading volumes on Dubai Gold and Commodities Exchange (DGCX), the region’s leading commodities derivatives venue, touched a record new high of 2,097,739 contracts in February, registering the exchange’s highest overall monthly value of above $47.03 billion.
The UAE’s main bourse has also delivered a stellar year-over-year growth of 67 percent in February 2018. The healthy performance came 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.
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 38 percent, with over 56,328 lots traded per day, valued at $1.74 billion.
The exchange said in a statement that euro, pound sterling and Australian dollar futures showed their highest monthly volumes in February 2018. Taking a year-to-date (YTD) prospective, trading volumes in the three currencies registered impressive growth of 207 percent, 160 percent and 76 percent, respectively, relative to the comparable period in 2017.
DGCX’s precious metals suite also emerged as one the best performers in February, with the segment’s overall volumes registering an incremental growth of double digits. Volumes in Gold Quanto Futures were up by 120 percent from last February, coming in at 1,714 contracts.
Les Male, CEO of the Dubai Gold and Commodities Exchange, commented: “Last month was an extremely volatile period for the global financial markets, because of which traders are continuously seeking protection and various hedging mechanisms to mitigate their risk. These volatility spikes correspond with the record trading volumes and increased participation at the DGCX, as the Exchange offers a diverse range of products and risk management tools that support traders and investors during rapid market movements. In addition, the Exchange deploys the best risk management and surveillance systems which allow our markets participants to trade with confidence and also monitor risk in real-time.”