Currency volumes set record on DGCX

Dubai: Annual currency volumes on the Dubai Gold and Commodities Exchange (DGCX) registered a 28 per cent growth last year, new figures revealed yesterday.

The exchange enjoyed its best ever year with a total annual volume of 1.9 million contracts worth $104.1 billion (Dh382.05 billion); a 32 per cent increase on 2009.

Eric Hasham, CEO of DGCX said, "Over 2010, DGCX offered investors some of the best tools available in the region to manage risk effectively in an uncertain market. Our growth in 2010 was also driven by our ability to offer an expanded range of liquid, competitively priced and easily accessible products within a safe and secure trading environment.

New products

"The success of 2010 sets the stage for greater progress in 2011. We are developing new innovative products and services to cater to the requirements of our members and market participants."

Annual volumes of euro, pound and yen futures rose 54 per cent, 12 per cent and 43 per cent respectively from 2009 to 473,771, 205,548 and 82,922 contracts. 2010 volumes for gold and West Texas Intermediate crude oil reached 490,175 and 115,777 contracts respectively.

Indian rupee futures were the exchange's biggest success story of 2010 accounting for 480,725 contracts over the year, a growth of 625 per cent from 2009.

Sajith Kumar, Chief Executive and Director at JRG International Brokerage, Dubai Multi Commodities Centre (DMCC), said: "DGCX has shown tremendous performance in 2010 by providing more liquidity than past years and by giving more trust to investors and traders, especially those based in the Middle East and India.

"This has helped traders and investors to focus on a commodity exchange based in the Middle East for their investment and trades. India's business class particularly enjoyed the rupee trading facility as DGCX is the only exchange permitted to trade legally on rupee outside of India.

"The launch of new currencies such as the Australian dollar, Swiss franc and Canadian dollar also helped DGCX to perform in 2010. DGCX has an incredible infrastructure as well as experienced brokers to help it scale further heights in 2011."

Gold picks up momentum

In October 2010, DGCX entered into a licence agreement with Dow Jones Indices, one of the world's leading index providers, as part of its plans to list futures contracts on Dow Jones-branded indices.

Among the first product of the new indices planned for DGCX is the Dow Jones Islamic Market Titans 100 Index Future.

Pradeep Unni, Vice-President at Richcomm Global Services, DMCC, said prospects were good for further growth at DGCX in 2011.

"These figures show that investors are utilising this particular exchange more than ever. The DGCX is the only official listed commodities exchange in the Middle East and it incorporates products that are very specific to the region," he said.

"The local markets performed much better in 2010 despite the difficult economic climate. Gold, in particular, began to pick up great momentum when several European countries began suffering severe sovereign debt problems. I anticipate the exchange will enjoy further growth in 2011 as it continues to gain more exposure," he added.