Ongoing Global Uncertainty Sees DGCX G6 Currency Volumes Continue Upward Trajectory
Increased trading activity in G6 currency portfolio comes ahead of launch of three FX Rolling Futures Contracts in July
Against a more stable, but fragile global economy the Dubai Gold and Commodities Exchange (DGCX) continues to provide investors with a wide range of derivative products that allows them to manage their risk effectively. In May, the DGCX built upon the recent standout performance of its G6 currencies portfolio, which recorded year-on-year (Y-O-Y) volume growth of 598.98%. The portfolio has now recorded year-to-date (Y-T-D) volume growth of 520.72% compared to the same period last year.
Among the G6 currency pairs, Euro, British Pound, and Yen Futures contracts registered the strongest performances, recording impressive Y-O-Y ADV growth of 516.2%, 336.42%, and 588.67% respectively.
Les Male, CEO of DGCX, said: “We are seeing continued currency volatility with markets and investors being pulled by two opposing currents; concerns over rising tensions between the US and China, and increasing optimism as lockdown measures ease across the globe. The upward trajectory of the DGCX’s G6 currency volumes reflects the strength and depth of our offerings in today’s uncertain climate and is testament to our efforts to widen investor participation and enhance liquidity.”
The increased trading activity in the DGCX’s G6 currency portfolio comes ahead of its launch of three FX Rolling Futures Contracts at the beginning of July.
“We are excited to further strengthen our value proposition by expanding our portfolio of currency products with FX Rolling contracts – perpetual rolling FX contracts for three currency pairs. We expect these to be particularly beneficial to our institutional investors by enabling them to hedge more efficiently during this period of heightened volatility,” Male added.
Total volumes on the DGCX in May totaled 0.88 million contracts, valued at USD 20.66 billion. The DGCX last month also recorded Average Open Interest (AOI) of 167,297 contracts. Open Interest (OI) is a definitive measure of an DGCX’s success, and the DGCX’s continued strong OI this year is a reflection of the robustness of its trading platform.
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 200 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) and is recognized as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 50 clearers from across the globe. For more information: www.dccc.co.ae
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