DGCX Upticks in Indian Rupee
Indian
Rupee Quanto Future
Up
by 42.14% YoY
DGCX
Records
Best
April since Inception!
The
Dubai Gold & Commodities Exchange (DGCX) achieved its best April
performance since inception, with overall volumes reaching 1,696,877 contracts,
valued at USD 32.29 billion. Last month’s record-breaking performance was
largely driven by an uptick in Indian Rupee (INR) trading fuelled by India’s
upcoming elections, as well as ongoing geopolitical tensions across Europe, the
United States, and Asia, which have helped maintain elevated volumes in other
contracts across the Exchange.
Additionally,
the Indian Rupee Quanto Future, the index pricing of the Indian Rupee US Dollar
currency pair, performed well, trading 1,621,202 contracts year-to-date
(Y-T-D), up 42.14% year-on-year (Y-O-Y).
Among
the G6 Currency pairs, the Euro was the most prominent, recording its highest
monthly Average Open Interest (AOI) of 3,574 contracts.
Les
Male, CEO of DGCX, commented: “After a strong start to 2019 in which we
expanded our portfolio of products and beat previous trading records, we have
maintained our momentum into the second quarter. Consistent growth in April’s
trading activity in contracts such as the Rupee Quanto Future and Euro
indicates that our market participants increasingly rely on the DGCX for
hedging and investment purposes, while other developments such as our new
connection to an ultra-low latency network demonstrate our ongoing commitment to
meet the needs of investors."
Last
month the DGCX connected to a new ultra-low latency network through McKay
Brothers International, a leading provider of microwave-based private bandwidth
and market data services. The network further lowers the speed of transactions
between the DGCX and Major European and US trading hubs, enhancing its
offerings to existing members, market participants and new entrants.
“We
have a lot more activity planned for the rest of the year as we widen
participation and further expand our member community. We particularly look
forward to the launch of MENA’s first exchange-listed Mini-Gold Product in
partnership with RAKBank, which will add another dynamic layer to our product
offering.”
Further
underscoring a particularly busy month, the DGCX in April received a new
Shari’ah certification for its Shari’ah Compliant Spot Gold contract (DGSG).
The Shari’ah Pronouncement (Fatwa) was issued by Minhaj Advisory, a leading
Dubai-based Islamic advisory firm, and determined that DGSG meets all the
necessary Shari’ah requirements in line with Islamic rules and principles.
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