Dubai Gold and Commodities Exchange is Booming

Dubai Gold and Commodities Exchange is Booming

Records the highest Year-To-Date volumes since inception, growing 43% from last year.
Records the highest Open Interest positions on 29th August valued at over US$ 8 billion.
Introduced extremely low-latency solutions for overseas market participants.
Now provides full-depth market data to support sophisticated trading strategies.

Volumes on the Dubai Gold and Commodities Exchange (DGCX) touched close to 13 million contracts, growing 43% from same period last year to record the highest ever volume for this period in over a decade.

This year, the Exchange recorded an average volume of 75,516 contracts a day, valued at around US$ 1.70 billion.

The Exchange also registered an impressive average Open Interest (OI) position of 156,965 contracts representing a growth of 167% over the same period last year. On 29th August 2016, the Exchange recorded the highest ever OI of 503, 262 contracts valued at over US$ 8 billion. The OI records indicate the increased trust and participation of market participants on DGCX, the region’s largest and most diversified derivatives bourse.

Performance of DGCX products

DGCX’s Indian Rupee traded an average of 41,751 contracts in August, valued at over US $ 1.24 billion. The Indian Rupee options contract set the highest ever average OI record with 5,353 contracts, up 38% from last year, and also registered a 115% year-to-date volume growth from 2015.

Average Daily Volumes (ADV) in DGCX’s gold product suite touched 2,749 contracts in August, growing 15% from last year, while average OI in August 2016 was up by 153%.

Commenting on DGCX’s performance, Gaurang Desai, CEO of DGCX said: “We are pleased to end the summer on a high note. The last few months saw DGCX set number of volume and open interest records. Yet as we move forward to the rest of the year, our focus remains on development of two key parameters which is (a) introducing more products that are unique, innovative and regionally relevant and (b) expand our membership base to deepen the market outreach.”

In August 2016, Exchange also introduced what is known as Full-depth market data feed to equip sophisticated traders to understand the market dynamics more efficiently and execute newer trading strategies. The Full-depth market data flow disseminates all available market orders in an order book on real time basis for better market visibility. The new data flow works in parallel to existing Best-Five market data feed.

DGCX also offers proximity hosting services along with low-latency trading access with its telecom services partners. This premium service cuts down execution time significantly for global traders. Faster services like this encourage more participation from global market participants to access DGCX markets and in turn increase diversity in participant base.

“We have significantly stepped up efforts on providing world-class connectivity and market accessibility solutions for our global and diversified trading community by constantly investing in our technology infrastructure and technology services. These efforts will go a long way in establishing DGCX and Dubai as a key global trading hub, amongst the likes of Chicago, New York, London, Mumbai and Singapore,” concluded Gaurang.

About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives.
DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. For more information:

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.