Dubai: DGCX Announces Its Achievement in 2016

Dubai Gold and Commodities Exchange, DGCX, has recorded a growth of 36% over 2015. In 2016, the Exchange reached its highest annual volume traded with an aggregate of 19.7 million contracts, valued at US $439.5 billion.

The year 2016 saw substantial global volatility triggered by a series of notable events; Brexit- leading to increased volumes in the Euro and British Pound, up 8% and 167% respectively, Indian currency demonetisation along with the US election results and the recent US Fed rate hikes, all of which had an impact on markets and volumes, culminating in the DGCX marking its highest Open Interest of 665,058 valued at US$ 9.7 billion.

This increased trading activity in the face of volatile economic situations demonstrates the value of DGCX’s diverse product range and its use by regional and international traders to hedge and mitigate their risk exposure.

Trading an average of 76,835 contracts per day in 2016, DGCX also achieved its highest Average Daily Volumes in its eleven years of operation.

DGCX’s currency segment was the outstanding performer in 2016, growing 34% from last year. The Indian Rupee products led the growth within currency segment, recording a substantial increase of 34% from last year. The Indian Rupee Options contract traded it’s highest volume with 334,823 contracts whilst the average daily OI touched 8,963 contracts.

Other currency pairs witnessed significant year-to-date growth with G6 futures chronicling a rise of 57%.

The DGCX gold basket registered growth of 61% in 2016. DGCX’s gold products all performed strongly; Gold futures (up 29%) and Gold Quanto (up 158%). The growth in DGCX’s gold products is a strong indicator of how the precious metal retains and enhances its value in a period of high volatility.

With the oil prices experiencing sharp fluctuations throughout the year, the volumes on DGCX’s energy products witnessed a significant jump of 206% from 2015.

Speaking on the occasion, Gaurang Desai, CEO of DGCX, said, "2016 has been a remarkable year for DGCX which extended beyond the significant volume growth and multiple Open Interest records that we have been able to achieve.

We have continued to deliver on our product strategy of launching innovative products such as Spot Gold and global Single Stock futures. The momentum has culminated in partnerships with large Chinese banks and exchanges.

DGCX sealed a ground-breaking agreement with the Shanghai Gold Exchange to launch the Shanghai Gold contract in Dubai. This is the first time ever that an Exchange outside of China has been able to provide regional investors access to the world’s largest bullion market.

Initiatives like these are truly unique for an Exchange and we will continue to push the envelope, creating long-term advantages for DGCX."

On December 16, 2016, the European Commission announced that the UAE has an equivalent regulatory regime for central counterparties to the European Union.

This development will contribute to a more confident market and enhancing cross border activity, leading to greater consolidation of markets.