DGCX AOI growth registers 90.7%
Investors
Flock to Safe-Haven Assets
M-O-M
average volume growth of 507.4%,
Year-on-year
ADV growth of 225.5%
The
Dubai Gold & Commodities Exchange (DGCX) saw a surge in trading on its
flagship Gold Futures product last month, as increasing geopolitical tensions
across the globe drove investors towards safe-haven assets. The product
recorded month-on-month (M-O-M) average daily volume growth (ADV) of 507.4%,
and year-on-year ADV growth of 225.5%, while also registering M-O-M Average
Open Interest (AOI) growth of 90.7%.
Les
Male, CEO of DGCX, commented: “Gold reasserted its position in June as the
safe-haven asset of choice, as investors worldwide flocked to the precious
metal on the back of fresh speculation around lower Federal Reserve rates, a
weak US dollar, and heightened geopolitical tensions between the US and Iran.
This was strongly reflected on the DGCX, with our Gold Futures contract
registering its best month since November 2016.”
The
DGCX traded over 1.73 million contracts in June, with the Exchange’s currency
portfolio also experiencing an upswing in trading, particularly its Indian
Rupee (INR) product suite.
INR Mini Futures registered its highest quarterly
AOI with 114,817 contracts between April and June, while INR Quanto Futures,
the index pricing of the Indian Rupee US dollar currency pair, registered its
best month since March 2016 with a total of 578,872 contracts traded.
Euro
Futures was another standout performer, registering its highest quarterly AOI
with 3,582 contracts, building on its strong trajectory from May as Brexit
talks continue.
“We
have invested significant time and energy this year on building our product
portfolio and strengthening our current contracts. We are thrilled to see
continued growth as an increasing number of investors recognize the value they
offer for hedging purposes, particularly in periods when markets are
experiencing sharp volatility,” added Male.
In
light of such strong performances, the DGCX recorded its third highest
quarterly AOI with 355,365 contracts over the last three months. Open Interest
is defined as the number of contracts outstanding in derivatives (such as
futures and options) trading at any time on a market and is a definitive
measure of a product’s and wider exchange’s success.
“The
next few months will be a particularly busy period for the DGCX, as we aim to
introduce new regionally relevant products in response to member demand. We are
confident that we will enter the second half of the year on the same positive
note in which we ended the first, building on our momentum and widening
investor participation,” concluded Male.
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