|05 January, 2020

Gold, commodities contracts traded on DGCX hit record levels

Dubai-based bourse says 2019 is its 'most successful year since launch'

Dubai Gold and Commodities Exchange. Image used for illustrative purpose.

Dubai Gold and Commodities Exchange. Image used for illustrative purpose.


The Dubai Gold & Commodities Exchange (DGCX) is starting the new year on a positive note by breaking several records in 2019, from the volume to the value of deals traded on the bourse.

As more investors turn to commodities as a hedge against uncertainty last year, the bourse traded more than 23.06 million deals during the last 12 months, beating the 22.26 million contracts recorded in 2018.

It also cleared over $866 billion in notional value and recorded its highest annual average open interest (AOI), with 324,803 contracts, up from the 284,736 contracts registered in 2018.

Open interest refers to the total number of outstanding contracts at the end of the trading day and is considered to be a strong indicator of the success of a bourse.

The DGCX shared the data on Sunday, stating that 2019 is their “most successful” year yet since its launch.

According to Les Male, CEO of DGCX, the numbers are a “testament” to their “continued efforts to widen investor participation and enhance liquidity” in their contracts.

“To eclipse our achievements from 2018 is an outstanding feat and demonstrates the effectiveness of our growth strategy to appeal to a broader range of market users seeking protection and various hedging mechanisms to mitigate their risk,” Male added.

Among the products traded on the bourse, the DGCX’s INR Quanto Futures contract, emerged as the best performer last year, with over 7.7 million contracts, up 109 percent year-on-year.

Also a strong performer is DGCX’s flagship Gold Futures contract, which traded over 478,000 deals up 107 percent year-on-year.

“We are delighted to see continued growth in our contracts as an increasing number of investors recognize the value they offer for hedging purposes during periods of uncertainty,” said Male.

“This has been particularly apparent over the last 12 months, in which we saw substantial global volatility triggered by a series of notable events including the US-China trade war, ongoing Brexit negotiations and the Federal Reserve cutting interest rates for the first time in over a decade,” Male added.

(Writing by Cleofe Maceda; editing by Mily Chakrabarty)


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© ZAWYA 2020

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