DUBAI, 5th October, 2015 (WAM) — Continued concerns over Chinese growth and expectations of an upcoming interest rate hike by the US Federal Reserve have led risk-averse investors to hedge their risks and trade derivatives products on UAE’s leading derivatives bourse, Dubai Gold and Commodities Exchange, DGCX,.
The Exchange’s trading volumes in Q3 2015 grew 36 percent from Q2, trading 4,142,368 contracts. The Exchange also saw a year-on-year increase of 29 percent, trading 1,461,264 contracts in September 2015.
The Exchange recorded the highest Open Interest (OI) with 110,145 contracts in Q3 2015, growing 143 percent from last quarter. DGCX also recorded the highest average daily OI of 160,858 contracts in September 2015. The highest ever daily OI of 223,787 contacts was achieved on 28 September 2015, surpassing the previous high of 125,066 contracts on August 27th, 2015.
Gaurang Desai, CEO of DGCX, said, “Open Interest is a key indicator of market confidence in trading DGCX products and we are happy to have achieved so many records in that area.”
DGCX’s gold segment registered a substantial growth of 71 percent from Q2 2015 and 20 percent from previous Q3 2014, trading 132,862 contracts in Q3 2015. While the Exchange’s Indian Rupee portfolio grew 37 percent from last quarter, reaching 3,887,956 contracts in Q3. DGCX’s hydrocarbon segment also recorded an impressive growth of 42 percent in Q3 compared to last quarter. Trading in DGCX’s G6 currency portfolio saw a significant jump in Q3, registering a 71 percent growth compared to Q3 2014.
Gaurang added, “Global markets endured turbulent times last quarter which made investors realise the significance of using a regulated platform like DGCX to hedge and manage their price exposure, and this is evident from the volume growth witnessed in our gold, currency and energy products. DGCX is the only exchange in the Middle East to offer electronic trading across multiple asset classes. This is key as it facilitates capital efficiency and cross pollination amongst different products, equipping investors with various hedging and risk management instruments to thrive in uncertain times.”
The newly launched products which include India Gold Quanto futures, Indian Rupee Quanto Futures and Mini Polypropylene futures, have been positively accepted by the market and has contributed to 18 percent of the Exchange’s total volumes in Q3. The year-to-date volumes also witnessed an increase of 19% with currency and hydrocarbon segments driving the majority of volumes, up by 22 percent and 58 percent respectively.
“Looking ahead to the next quarter, our focus will primarily be on two areas, deepening our membership pool and diversifying our product offering. While doing so, we want to ensure positive synergies exist between these areas. Our product pipeline will revolve around an ‘inside out’ and ‘outside in’ approach which means we will aim towards launching regionally relevant products for global investors and globally relevant products for regional investors. We have an interesting mix of products which we look forward to launching this year and these include a India Silver Quanto contract, a Mini sized WTI contract and more products in equity and currency space,” concluded Gaurang.