(MENAFN- Khaleej Times)ubai Gold and Commodities Exchange ended the first half with trading volumes of more than 6.4 million contracts valued at over $185 billion.
Dubai -Driven by the strong performance of emerging market contracts first-half volumes on the Dubai Gold and Commodities Exchange or DGCX jumped 11 per cent from last year to exceed six million contracts.
The exchange ended the first half with trading volumes of more than 6.4 million contracts valued at over $185 billion.
DGCX said in a statement that its Indian Rupee futures emerged as the key performer in first half registering volumes growth of 15 per cent year on year.
“Brisk trading in the contract helped the exchange dominate the global Indian Rupee futures market in June with a market share of 30.69 per cent. June proved to be an exceptional month for the contract this year witnessing volumes of 904044 contracts an increase of 38 per cent from last year” the statement said.
DGCX’s other Indian Rupee futures products also saw high growth. Year-to-date 2015 trading volumes on the Mini Indian Rupee futures saw a growth of 10 per cent in June while Mini Indian Rupee contracts denominated in Euro (INR/EUR) and Pound Sterling (INR/GBP) grew 54 per cent and 37 per cent respectively. The overall currency segment represents the lion’s share of growth on the Exchange in H1-2015 growing by 41 per cent.
The success of DGCX’s newly listed contracts indicated the market’s endorsement of the exchange’s latest product innovation. New products — India Gold Quanto futures Indian Rupee Quanto futures and Mini Dubai Polypropylene futures — registered robust volumes of 856844218 and 564 contracts respectively in June. The Indian Rupee Quanto contract recorded the Exchange’s highest ever launch day volume of 13291 contracts on June 05 2015 the statement said. June saw the exchange setting several new trading records. DGCX recorded its highest ever Open Interest or OI of 94056 contracts on June 26 which is a key indicator of strong market confidence in DGCX. The exchange also recorded its third highest average daily OI of 54764 contracts in June 2015. In particular the DGCX BSE Sensex contract recorded its highest ever average OI of 1388 contracts on June 25.
Gaurang Desai interim CEO of DGCX said apart from a strong increase in volumes the first six months also saw the successful launch of innovative new products growth in member community and a series of partnerships that widened our reach in key overseas markets.
“The record growth of our Indian Rupee contract can be attributed to the increasing demand from a broad base of global investors seeking efficient currency hedging instruments that offer greater market transparency and robust price discovery. Our newly launched contracts have also performed well which is a clear indication that it has been received well by market participants” said Desai.
He said the DGCX is poised for a substantial diversification of its product portfolio with new contracts in the currency hydrocarbon precious metals equity and agricultural segments due for launch in the second half of 2015. In particular DGCX plans to revitalise its energy product basket by adding two to three products later this year. WTI crude futures currently the only energy contract listed by the Exchange witnessed an uptick in volumes due to the massive gyrations in prices. The contract recorded an increase of 41 per cent year-on-year and a sizable growth of 66 per cent in H1 2015 compared to same period last year.
Among other products DGCX’s metals segment performed well with Gold futures recording an increase of eight per cent from last month. Volumes in Silver and Copper also rose by 140 per cent and 85 per cent respectively while volumes in the hydrocarbon segment recorded an increase of 40 per cent. The equities segment also witnessed a growth of five per cent from the previous month.
“With the launch of further new products in the second half of the year the Exchange seeks to play an even more significant role in the development of the derivatives market in the UAE as well as the wider region ‘’ added Desai.
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