By Sam Bridge
CEO Les Male reveals 'considerable pipeline of products' ready to launch in 2020 subject to regulatory approval
The Dubai Gold & Commodities Exchange (DGCX) has announced that it broke its annual volumes and average open interest (AOI) records last year, making 2019 its most successful year since launch.
The exchange said it traded 23.06 million contracts in 2019 - beating its previous record of 22.26 million contracts traded in 2018 ? with DGCX’s wholly-owned clearing house, the Dubai Commodities Clearing Corporation (DCCC) clearing over $866 billion in notional value.
DGCX said it also recorded its highest yearly AOI in 2019 with 324,803 contracts, up from 284,736 contracts in 2018.
Open interest refers to the total number of outstanding contracts at the end of the trading day and is a strong indicator of an Exchange’s success.
Les Male, CEO of DGCX, said: “DGCX’s second consecutive year of record volumes and all-time high average open interest is testament to our continued efforts to widen investor participation and enhance liquidity in our contracts.
"To eclipse our achievements from 2018 is an outstanding feat, and demonstrates the effectiveness of our growth strategy to appeal to a broader range of market users seeking protection and various hedging mechanisms to mitigate their risk.”
The best performing product in 2019 was DGCX’s INR Quanto Futures contract, with the index pricing of the Indian Rupee US dollar currency pair trading over 7.7 million contracts, up 109 percent year-on-year, with AOI up by over 65 percent over the same period.
DGCX’s flagship Gold Futures contract also performed strongly last year, trading over 478,000 contracts, up 107 percent.
“We are delighted to see continued growth in our contracts as an increasing number of investors recognise the value they offer for hedging purposes during periods of uncertainty. This has been particularly apparent over the last 12 months, in which we saw substantial global volatility triggered by a series of notable events including the US-China trade war, ongoing Brexit negotiations, and the Federal Reserve cutting interest rates for the first time in over a decade,” said Male.
He added: “This year we aim to continue our growth trajectory and build on the strong platform we established in 2019. We have a considerable pipeline of products ready to launch subject to regulatory approval, including Mini-Gold Futures and FX Rolling contracts,” he added.For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.