DGCX registers trading volume with a value of $15.74b in March

The Dubai Gold & Commodities Exchange (DGCX) recorded a monthly Average Open Interest (AOI) of 134,154 contracts during the month of March, and registered trading volume with a total value of $15.74 billion.

In response to further inflation, policy decisions and continued geo-political conflict around the globe, there was a surge in demand for the DGCX’s G6 Currency Future Contracts during March, as it recorded a year-to-date (YTD) growth of 140.11 per cent as compared to the same period last year.

Among the G6 currency pairs, the Euro and British Pound Futures Contracts recorded a year-on-year (YOY) advanced growth of 527.5 per cent and 261.5 per cent respectively. Trading volumes in the Japanese Yen as well as the Australian Dollar registered a significant YTD growth of 339.2 per cent and 755.76 per cent respectively.

Additionally, the DGCX’s Pakistani Rupee (PKR) Futures Contract also registered the highest monthly volume since its launch in 2021, registering a combined total of 7,158 lots valued at $79.52 million during the month.

Les Male, CEO of DGCX, said, “Trading activity for March was led by the DGCX’s currency portfolio, as market participants looked to manage currency risk in an uncertain climate arising from geopolitical events and changing monetary policies.

The G6 Currency portfolio in particular saw a significant increase in demand, with all six contracts witnessing an uptick in volumes. We remain committed to providing our members with innovative and value-added products and continue to work towards offering them the best possible trading experience.”

During the month, the DGCX participated at the Arab Federation of Capital Markets (AFCM) Annual Conference 2022, which brought together more than 2000 attendees from exchanges, financial market regulatory bodies, brokerage firms, investment fund managers and economic journalists. The exchange also hosted a webinar in collaboration with the Global Islamic Financial Services (GIFS), which discussed Islamic Derivatives Products as well as the exchange’s Shariah Gold Futures Contract.

Additionally, the DGCX’s clearing house, the Dubai Commodities Clearing Corporation (DCCC), announced the renewal of its recognition as a third country CCP (TC-CCP) by the European Securities and Markets Authority (ESMA) during March.

The announcement reflects the DCCC’s adherence to international regulatory standards and confirms its alignment with stringent risk management and governance frameworks.

The month of February saw the Dubai Gold & Commodities Exchange (DGCX) registered trades with a total value of US$13.681 billion, as global markets responded to rising inflation, mounting oil prices as well as the Russian - Ukrainian conflict, which resulted in continued volatility during the last week of the month.

The exchange registered a monthly Average Open Interest (AOI) of 125,206 contracts during February – and saw its precious metals’ portfolio lead trading activity, the Group said in a press statement on Friday.

The Group’s Gold Futures Contract recorded a year-on-year (Y-O-Y) Average Daily Volume (ADV) growth of 734 per cent, while its Silver Futures Contract registered 75 per cent.

The DGCX Group saw a sharp spike in Indian Rupee (INR) trading, with its Rupee Mini Futures Contract, Rupee Options Contract and Rupee Weekly Contracts registering increases in 67 per cent, 206 per cent and 87 per cent, respectively.

DGCX’s West Texas Intermediary (WTI) Futures gained traction following increased volatility in oil markets – with a Y-O-Y ADV growth of 136 per cent.

Les Male, CEO of DGCX, said, “Volatility has been a recurring theme over the past few months, with investors and traders continuing to grapple with inflation, oil prices and geopolitical developments. Against this backdrop, we have seen our precious metals’ portfolio lead trading activity on the exchange.

“We have also seen a sharp uptick in Indian Rupee trading as market participants look to hedge their exposure to one of the world’s fastest-growing economies. DGCX remains committed to providing our customers with a broad array of tradable products that meet their hedging and investment needs.”

The DGCX has also announced that it will host two webinars for market participants during March. The first webinar will discuss a variety of hedging strategies related to trading its G6 Currency Future Contracts on 10th March, while the second will focus on its Shariah Gold Futures Contracts.

During 2021, the Dubai Gold and Commodities Exchange recorded a yearly AOI a sum of 1,985,584 contracts and traded 7,076,350 contracts during the year – with the total value of the contracts amounting to US$149.676 billion.

The DGCX’s best performing product in 2021 was its Indian Rupee Options (DINRO) Futures Contract, which traded up 1,233 per cent year-on-year (Y-O-Y).

WAM