DGCX Begins 2022 with Total Trades Valued at USD 7.95 Billion in January
Against the global backdrop of soaring inflation, a potential rise in interest rates, as well as high crude oil prices, the Dubai Gold & Commodities Exchange (DGCX) registered a monthly Average Open Interest (AOI) of 128,828 contracts during January – as well as traded a total value of USD 7.95 billion during the month - as members looked to further manage their risk.
Aligned with global trends, market participants were drawn to safe-haven assets such as precious metals during the month, with the DGCX Group’s Gold Contract recording a year-on-year (Y-O-Y) Average Daily Volume (ADV) growth of 95% during January.
During the month, participants also actively leveraged the exchange’s pool of Indian Rupee (INR) Currency Contracts - with the Indian Rupee Options Contract registering a combined total of 844 lots valued at USD 0.09 million. The DGCX’s INR Quanto Futures Contract also traded strongly, recording a combined total of 26,963 lots valued at USD 201.23 million during the month.
Les Male, CEO of DGCX, said: “Volatility in the equity markets, expectations of interest rate hikes and high oil prices - amongst several other factors - had an impact on trading in January, as market participants looked for safety in response to global economic headwinds. Looking ahead, we see these trends continuing in the short-term and expect increased demand for our derivative products as market participants look to hedge and off-set their risk. We can also share that we have a robust pipeline for 2022 and will soon introduce a number of contracts and services that will appeal to our member base.”
The DGCX was recently awarded the ‘Exchange of the Year – Middle East and Africa’ at the prestigious FOW Global Investor MENA 2021 Awards for the fourth year in a row. Additionally, the DCCC, a wholly owned subsidiary of DGCX providing clearing and settlement services was also awarded the ‘Clearing House of the Year - Middle East and Africa.’
Additionally, on Thursday, 3rd of February 2022, the DGCX will host a virtual webinar aimed at market participants looking to benefit from the DGCX’s diverse opportunities offered by the exchange’s INR suite. The session will explore numerous trading approaches, including hedging, trading and volatility strategies using the Indian Rupee Options. Interested participants can register through the DGCX website.
The Dubai Gold & Commodities Exchange (DGCX) is the region’s leading derivatives exchange and has played a pioneering role in developing the regional market for derivatives trading, clearing and settlement.
The DGCX owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DGCX & DCCC are 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).
The DGCX’s strategic geographic location in Dubai between the Far East, Europe and Africa serves as a unique, global window for traders and investors. With over 100 members across the world, the DGCX drives liquidity in the market by offering a broad range of futures and options contracts covering base and precious metals – including the world’s only Shari’ah Compliant Spot Gold Contract – hydrocarbons, equities and currencies.
For further information, please contact:
Weber Shandwick PR
Tel: +971 50 255 3402