Despite the summer being a typically slow period for markets, the Dubai Gold and Commodities Exchange (DGCX) witnessed an uptick in trading volumes in key products, predominantly driven by increased investor interest in the Exchange’s offerings in Euro Futures, INR Options and Indian Single Stock Futures. The Exchange has strategically used the summer months to roll-out several initiatives focused on product development and partnerships aimed at strengthening its presence in the regional financial markets.

The DGCX’s volume highlights for the month of August include: Euro futures traded its highest volume since January 2013, showing month-on-month growth of 77 percent and year-on-year growth of 19 percent. DGCX’s Indian Single Stock Futures witnessed strong growth too, with volumes growing by 583 percent compared to the same period last year. With investors looking for protection after a period of low volatility Indian Rupee Options volume surged, leading it to mark year-on-year growth of 40 percent.

Gaurang Desai, Chief Executive Officer of the Dubai Gold and Commodities Exchange, commented: "As a multi-asset Exchange, we endeavor to provide our market participants with access to a number of products for their investment, hedging and arbitrage needs. The increased trading activity in contracts like the Euro and Indian Single Stock futures is an indication that our market participants truly appreciate and are increasingly becoming reliant on wider range of DGCX products."

Looking ahead, the DGCX is looking to launch their Sharia-compliant Spot Gold contract later this year. Also, on the heels of the successful addition of ‘Calendar spreads’ on Gold and G6 Currency contracts in June, the Exchange will introduce calendar spreads in WTI and Brent contracts promoting its Energy products portfolio.

Gaurang added: "At DGCX, we have embarked on a path to broaden our reach. With Dubai already known as the ‘City of Gold’, the recent developments in global geopolitics and increased volatility in gold has resulted in an amplified appetite to hedge and invest in the product. The upcoming Sharia Spot Gold contract will not only enhance our product offerings, but also meet the varied trading requirements of our customer base within the UAE, Saudi Arabia and the wider GCC region."

Source: Wam