DGCX Gold Futures Trading Volumes Increase and Open Interest Continues to Build During Turbulent Global Markets
As the COVID-19 pandemic causes volatile swings in markets across the globe, investors are making increasing use of the Dubai Gold & Commodities Exchange (DGCX’s) derivatives products and services as risk management tools. The DGCX last month saw its flagship Gold Futures product record year-on-year (Y-O-Y) Average Daily Volume (ADV) growth of 649.5%, and year-to-date (Y-T-D) volume growth of 742.8% compared to the same period last year. The DGCX’s G6 currency portfolio also saw a trading spike in March, registering Y-O-Y volume growth of 390.8%, and Y-T-D volume growth of 475.4% compared to the same period in 2019. And in another indication of the sustainable growth the Exchange is experiencing in resident interest and liquidity, Y-T-D Average Open Interest (AOI) last month was 380,869 contracts, up from 268,752 during the same period last year.
Commenting on the impact COVID-19 is having on the DGCX and global markets, Les Male, CEO of DGCX, said: “These are truly extraordinary times. The spread of COVID-19 has caused tremors of uncertainty across global markets, in which stocks have plunged into bear market territory in record time. During these periods of heightened concerned, as the largest and most diversified derivatives exchange in the Middle East, we are committed to providing our traders and members with a wide range of products across different asset classes to manage their risk effectively when they need them the most.”
Total volumes on the DGCX in March totalled 1.8 million contracts, valued at USD 45.133 billion. ADV throughout the same month registered 81,850 contracts.
“Markets play a critical role in the global and regional economy so it is important that they remain open and transparent to give investors confidence. With the DGCX experiencing high-levels of activity we remain committed to supporting our members from across the globe and providing our services as usual,” Male added.
The DGCX Group’s market continues to operate normally across both the exchange and clearinghouse, providing secure and reliable price discovery and risk management services to members and their clients. It is not expected but any change to the normal operation of either the market or the clearing functions will be communicated to the market by way of notice.
About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 148 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities and currency sectors. DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae
DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA). It is recognised as a licensed Central Clearing-Counterparty (CCP) by SCA and a Third-Country CCP by European Securities Markets Authority (ESMA) with over 60 clearers from across the globe. For more information: www.dccc.co.ae
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