Dubai commodities exchange passes YTD milestone

CURRENCY FUTURES: DGCX trades in euros jumped 240 percent in the first nine months of the year. (Getty Images)

Dubai Gold and Commodities Exchange (DGCX) said on Monday that year-to-date (Jan.-Sept.) volume had passed the one million contracts mark for the first time, up 52 per cent on last year, official news agency WAM reported.

Higher trading activity was led by currencies, precious metals and crude oil, WAM said.

YTD volumes stood at 1,020,000 worth $52 billion, WAM said. Third quarter turnover was 385,000 contracts traded, valued at $20.5 billion, it said.

Malcolm Wall Morris, DGCX's chief executive, said that increased volatility in the global financial and equity markets has led market participants to shift resources into areas such as commodities and currencies. "In the current high risk climate, commodity derivatives are offering the opportunity to diversify and achieve a balanced portfolio," he said.

"During this time of economic uncertainty and increased counterparty credit risk, the record third quarter volume at DGCX also endorses the benefits of transacting and clearing transactions via the well regulated and low risk environment of an Exchange and clearing house," he added.

Gold futures rose by 37 per cent to 695,000 contracts, while the average daily volume for Gold futures stood at 3,200 contracts in September, up 51 per cent on September 2007.

In currencies, the euro led the growth with 94,000 contracts in the same period, up 240 percent compared with the corresponding period last year.

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