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Sun 1 Jul 2018 06:35 PM

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DGCX sees record $250bn traded value in first half of 2018

The best performing asset classes at the Dubai Gold and Commodities Exchange have been with the Indian Rupee (INR) and the G6 Currency

DGCX sees record $250bn traded value in first half of 2018

Dubai Gold and Commodities Exchange (DGCX) has achieved record results in the first half of 2018 with a 44% year on year rise in contracts, totalling over $250 billion traded value for the time in its 13-year history.

The exchange traded in 11,300,000 contacts in total, though it recorded 2,046,806 contracts in June alone, with traded value reaching $42.3bn and marking a 74% increase from the same month last year.

Its best performing asset classes have been with the Indian Rupee (INR) and the G6 Currency, with INR volumes rising 22% from last year, driven mainly by increasing hedging appetite in volatile markets. Volumes in G6 futures grew 97% year on year to reach 387,586 contracts. It delivered a record $404 million upon the contracts’ expiry, with other notable performers include the Dubai India Gold, Shanghai Gold and Chinese Yuan.

“While our exceptional results have been bolstered by geopolitical uncertainty throughout 2018, with traders seeking protection and various hedging mechanisms to mitigate their risk, they have also been driven by the exchange’s ability to enhance liquidity and widen investor participation in both established and new products,” said CEO of DGCX, Les Male.

He added that the positive response to the exchange’s recently launched Shari’ah Compliant Spot Gold contract demonstrates its initiative towards further asset class diversity.

DGCX launched the world’s only Shari’ah Compliant Spot Gold contract in March, and has since traded over 520ksg of gold worth $22 million.

The product was the first exchange-listed Shari’ah compliant commodity product in the GCC, and currently the only Shari’ah compliant listed derivative in the world.