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Thu 3 Jan 2019 01:42 PM

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Dubai Gold and Commodities Exchange sets trading record in 2018

Total value of the contracts was $474.9bn, beating its previous highest value of $448bn traded in 2013

Dubai Gold and Commodities Exchange sets trading record in 2018
The Dubai Gold and Commodities Exchange.

The Dubai Gold and Commodities Exchange (DGCX) has announced that broken its annual volumes record, trading 22.26 million contracts in 2018, up 28 percent from the previous year.

The total value of the contracts was $474.94 billion, beating its previous highest value of $448 billion traded in 2013. Average daily bolumes also finished the year at an all-time high, reaching 86,615 lots.

The Exchange achieved a strong start to 2018, recording 5,541,732 lots traded in Q1, valued at $129 billion. Building on this momentum, in May, reported its best month since inception, recording its highest monthly volume with 2,163,598 contracts traded, valued at $46.1 billion.

But the Exchange's best quarter came in Q3 with 5,863,276 lots traded.

In March, the Exchange launched the GCC’s first and the world’s only exchange-traded Shari’ah Compliant Spot Gold contract.

Les Male, CEO of the DGCX, said: "Throughout the year, the DGCX has achieved spectacular growth and broken numerous records, consistently demonstrating why it is the leading derivatives exchange in the Middle East.

"While geopolitical uncertainty and other factors beyond our control have contributed to our remarkable performance, it has been our hard work and efforts from within that have had the largest bearing on our success.

"Our mandate in 2018 was to widen investor participation and enhance liquidity. We have done this by strengthening our capabilities and diversifying our product range, offering investors access to a wide range of products on a robust, fully regulated and secure platform, whilst continuing to hold innovation at the core of what we do."

He said the best performing asset classes in 2018 were the Indian Rupee (INR) and the G6 Currency futures. INR volumes increased by 25 percent from 2017, driven mainly by increasing hedging appetite in volatile markets, while volumes in G6 futures grew 9 percent to reach 595,491 contracts.

"It was a particularly busy year for INR trading as the Indian rupee touched record lows, with investors seeking safety in the US Dollar in response to global economic and political headwinds. While the foreign exchange market as a whole witnessed volatility on the back of global trade discussions, changing market dynamics and developments across the UK, USA and Europe pushed our G6 currency portfolio to all-time highs," Male added.

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