DGCX July Bulletin
July marked a positive start to the second half of the year for Dubai Gold and Commodities Exchange, with volatility driving demand for portfolio risk management as we continue to provide the necessary tools for customers to manage and hedge risks and uncertainties across asset classes.
Against a backdrop of geopolitical challenges, potential recession, and inflation concerns that have sparked significant rates hikes and global asset pricing fluctuations, the exchange registered 28,809.33 Average Daily Volume (ADV) trades throughout the month, an 8.96% year-on-year (YoY) increase from July 2021. DGCX registered a monthly Average Open Interest (AOI) of 121,105 contracts for the month of July and a notional value traded of USD 11,726.55 million.
The consistently high performance was fueled by DGCX’s flagship Gold Futures Contract, which delivered ADV growth of 192.58%. The growth came despite DGCX’s precious metals segment in the shape of its Silver Futures Contract contracting by (90)% YoY
DGCX’s G6 currencies portfolio continued its strong performance from the previous month with a combined total of 144,319 lots on a year-to-date basis. The Canadian Dollar Contract was the strongest performer, registering a volume of 11,197 lots (YTD). And the weakening value of the Euro and Pound resulted in high volumes of 37,225 and 33,365 lots (YTD), respectively for both Contracts. Similarly, CHF Volume Contracts were recorded at 19,084 (YTD) and Yen Volume Contracts reached 29,151 (YTD).
Additionally, DGCX Group saw its Indian SSF product register YoY ADV growth of 537 lots, indicating a continued strong appetite from investors for blue-chip Indian stocks. The Indian Rupee Weekly Future Contract also benefits from consistently high market participation, which increased to 946 lots this month compared to July 2021.
In other news, Chairman and CEO of DGCX, Ahmed Bin Sulayem attended the India Gold Conference which was held in Chennai on the 29th of July as a guest of honour and was accompanied by our relationship management team.
The Dubai Gold & Commodities Exchange (DGCX) is the Middle East’s largest digital marketplace where traders manage risk, protect value, and grow portfolios. We drive liquidity in the market by offering a broad range of futures and options contracts covering base and precious metals, hydrocarbons, equities and currencies. Our members get the assurance of a highly regulated derivatives trading and clearing platform, which has global credibility and a proven settlement track record.
The DGCX owns and operates the region’s largest and only multi-asset Clearing House – DGCX Clearing. It is recognised as a licensed Central Clearing-Counterparty (CCP) by SCA, a Third Country CCP by European Securities Markets Authority (ESMA) and a 'Recognized Clearing House' (RCH) by the Monetary Authority of Singapore (MAS). Additionally, the exchange and clearing house is also regulated by the Securities & Commodities Authority (SCA) in the UAE.
Our unique location at the convergence of trade flows, time zones and commerce allow us to seamlessly fill a vital position in the global derivatives landscape, working across any market and geography and providing uninterrupted service with simple and transparent fees, benefitting from the UAE’s progressive regulatory framework.