The Dubai Gold and Commodity Exchange (DGCX) has enjoyed a successful start to 2013 which has been punctuated by the venue’s continued concentration on its Indian Rupee futures contract.
This particular instrument dominated during last year’s volume announcements at the DGCX, which stood it out as a great hopeful among new exchanges amid a year of low volumes worldwide.
Today, further demonstrating its popularity, Indian Rupee trading volumes for July were announced by DGCX, which recorded a robust month of trading activity with total trade value of $44.68. July volumes registered a significant growth of 55% over the same period last year.
DGCX’s currency segment continued to contribute a significant share of the venue’s total volumes, recording a year-on-year (YOY) growth of 61% with 1,450,041 contracts traded.
In terms of actual values, the Indian Rupee contract recorded its highest ever monthly volume, trading 1,252,965 contracts in July, a 40% growth over the same period last year.
A One-Horse Race
Trading in other currency pairs such as in Euro and Yen were also increased substantially, although it is clear that there is tremendous reliance on the Indian Rupee contract. In January this year, DGCX’s CEO Gary Anderson explained to Forex Magnates that “this particular contract is increasingly appealing to a range of institutions that consume Indian Rupee liquidity not just in the Middle East but also in international markets.”
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“The product has been attracting growing attention from international institutional participants, ranging from multinational banks, non-deliverable forward (NDF) markets, traders and other business entities. Building on this success, DGCX is exploring the introduction of new futures contracts in Emerging Market (EM) currencies” stated Mr. Anderson.
With regard to overseas markets, Mr. Anderson explained: “The objective is to offer a platform for offshore trading of Emerging Market (EM) currency contracts. DGCX offers a safe and regulated environment for international investors to hedge their exposures in emerging market currencies offshore.”
91% Year To Date Increase
Total year to date (YTD) volumes rose by 91%, with the Exchange having traded a total of 9,209,767 contracts in 2013. Volumes in INR futures have grown 84% from last year.
Both Euro and Yen futures have also registered strong year-to-date performances, increasing by 266% and 78% respectively.
DGCX’s precious metals segment also performed well in July, with volumes in Gold futures rising 16% from June to 34,414 contracts. Silver futures also grew 150% from the previous month.
Making a commercial statement on July’s results, Mr. Anderson explained: “Continued growth on the Exchange – despite the traditionally slower period of the Holy Month of Ramadan highlights the continued and growing demand for DGCX’s products and services in the region. The consistently robust performance of INR futures in particular is testament to DGCX’s ability to provide international investors with a safe, liquid and regulated environment to hedge their rupee fluctuation risks offshore.”
“With significant interest coming from retail and international institutional participants for Emerging Markets contracts, the continued development of a strong offshore platform for Emerging Markets trading remains a key strategic focus for the Exchange. The launch of the MINI Indian Rupee Futures and Sensex Futures earlier this year were very much part of this strategy and we continue to investigate similar opportunities in close consultations with our Members” concluded Mr. Anderson.