- Highest monthly Open Interest recorded with 78,391 contracts , growing 43% from last month average
- Newly launched Quanto products contributed to 13% of the overall monthly volumes
Year-to-date
(YTD) volumes on the Dubai Gold and Commodities Exchange (DGCX)
registered a growth of 11% from the same period last year, trading over
7.5 million contracts. The Exchange also recorded the highest average
monthly Open Interest (OI) in July 2015 with 78,391 contracts, beating
the previous high of 59,688 contracts in March 2015. The growth in OI
was driven by strong performance in the Exchange's emerging markets
contracts particularly on the newly launched Quanto products.
A
key indicator of the Exchange's robust performance was the growth in
average daily volumes (ADV) during July, which reached an average of 49,673 contracts a day, recording an increase of 15% over same period last year.
Volumes
in the Exchange's precious metal segment saw new highs with the recent
introduction of Indian Gold Quanto futures. The Gold Quanto greatly
complements DGCX's contract on Gold, and allows investors to gain access
to the Indian gold market without being exposed to movements in the
USD-INR exchange rate.
Together,
the recently launched Quanto products on Indian Gold and Indian Rupee
accounted 13% of DGCX's July volumes, which reflects significant
traction that the new contracts have gained amongst the regional FX and
Bullion trader community.
While Indian Rupee Futures retained top performer status recording a substantial growth of 13%
from last year and continues to be the largest Exchange Traded
Derivative (ETD) product globally. DGCX's currency segment saw a strong
growth, as YTD volumes in G6 Currency pool grew 22%.
In
July 2015, S&P BSE Sensex futures - the first equity index futures
that marked the bourse's entry into the equity asset class, completed
two years of trading on DGCX Sensex Futures. Structured as a quanto
future, DGCX Sensex futures provides a unique opportunity for regional
traders to participate in one of the largest and fastest growing
Emerging Markets. Since launch, Sensex futures have seen tremendous
growth with trading surpassing that of the onshore Sensex futures to
which it is referenced. The contract targeted specifically at
Non-Resident Indian (NRI) Diaspora in the UAE has seen noteworthy
interest from the Dubai based brokers.
The
recent volatility in the energy sector drove heightened interest in
trading the DGCX WTI futures, which registered a year- to-date increase
of 66% compared to the same period last year. The Exchange is planning
to expand its product offering in energy sector soon.
Gaurang
Desai, Interim of CEO of DGCX, said: Following the exceptional H1
performance, we are delighted to witness another month of strong
trading. Our newly launched Quanto products are generating a lot of
interest and increased participation from market participants. These
contracts' unique value proposition provides significant arbitrage and
hedging opportunities from exchange rate fluctuations and makes them an
effective risk management tool for offshore investors looking to gain
exposure into one of the world's largest emerging markets. As we enter
the second half of this year on a promising note, our focus remains on
introducing more products that are relevant to investors within UAE and
larger GCC region, and expanding our member base and reach
internationally."
| 
