Dubai: Trading volumes on the Dubai Gold & Commodities Exchange (DGCX) recorded an all-time high, exceeding 9.5 million contracts in the first half of this year as uncertainty over Brexit vote and its after effects on the global markets continue to unfold.
This marks the highest half-yearly trading volume recorded for the Exchange, growing 49.64 per cent over the same period last year. On June 24, the exchange recorded the highest ever daily volume with 150,570 contracts valued at $3.55 billion.
“Brexit, an event of seismic proportions has triggered extreme volatility in world markets over the weeks running up to actual vote and result days. It is in these times, investors look for regulated Exchange platforms to hedge their price risk exposures across asset classes,” Gaurang Desai, CEO of DGCX, said in a statement.
The Exchange witnessed a strong upswing across all its asset classes with volumes surpassing 2015 half-yearly volumes signifying the growth trajectory of DGCX.
Commodity prices have rebounded on speculation that supply disruptions and production cuts are whittling away the surpluses that caused the price collapse. As global demand shows signs of improvement, it had a positive impact on DGCX’s precious metals segment which witnessed a robust trading activity this year with 104 per cent growth and recorded 422,537 contracts.
In DGCX’s currency segment, the flagship Indian rupee contract saw brisk trading as rupee experienced sharp fluctuations due to mounting concerns over the Indian Central Bank Governor’s impending departure. Volumes in the Indian Rupee and Mini Indian Rupee futures, recorded an increase of 7.71 per cent and 20.62 per cent respectively, while the Indian Rupee Options contract saw a spike of 164.08%. Among the G6 currency pairs, fuelled by the ‘Brexit’ developments, volumes on British Pound and Euro futures rose by 163 per cent and 121 per cent respectively on Year-to-Date basis.
On the energy front, DGCX 1000 Barrel WTI futures recorded a growth of 229.45 per cent while the mini sized 100 Barrel WTI contract traded a sizeable volume this year with 35,120 contracts.
