Trading numbers at Dubai Gold and Commodities Exchange continued to perform well in September both in terms of year-to-date (YTD) growth and average daily volumes (ADV). Total trading figures rose above those recorded in 2021 over the period.
Volumes were up 18% by the end of September, while the total value of contracts traded so far in 2022 is USD 114,168.75 million.
Strong currency trading continued in September, with the Euro, Pound Sterling, Indian Rupee, Yen and Australian Dollar maintaining significant growth for YTD and ADV volumes compared to 2021. The overall volume of trades stood at 471,285, up from 303,203 trades recorded in the same month last year, an 55% growth.
124,743 Contracts Average Open Interest
198.32% Y-T-D Growth Gold Futures Contract
28,668 contracts worth USD 1248.25 million G6 Currencies
DGCX added a record number of members in Q3 with its biggest quarterly increase in trade members over the last five years, reinforcing the growing confidence in its commitment to continuous innovation and improvement in product offering.
Spotlight
The Israeli Shekel recorded its second highest volume since its trading began on the Dubai Gold and Commodities Exchange.
The Pakistani Rupee recorded its third highest ADV since its inception.
With spiralling inflation and rapidly rising interest rates across many of the developed economies, fears of a global recession continued unabated throughout September. Additionally, geopolitical unrest continues to exacerbate economic turbulence in European countries whose citizens face spiralling energy costs as winter approaches. Consequently, market participants continued to focus on currencies, in addition to gold, which registered a near two-fold YTD rise in volumes in September. At the top of the pile, the Australian and Canadian Dollars and the Japanese Yen all saw greater than ten-fold increases in their respective YTD volumes.
INR Weekly Futures total trades worth USD 275.90 million
INR Options total trades worth USD 2.98 million
INR Quanto Futures total trades worth USD 1434.77 million
DGCX News
DGCX launches Physical Gold and Futures and Spot Gold Contracts
In September, DGCX announced the launch of new Physical Gold Futures and Spot Gold Contracts as it continues its strategic goal of becoming the de facto gold pricing standard in the region.
The launch of the two products provides traders and financial institutions the ability to use physical gold as collateral to access affordable sources of short-term lending, backed by the guarantee provided through the Exchange clearing house acting as the central counterparty. The products are designed such that they can be used together by traders, similar to a repurchase agreement (“Repo”), to get short-term liquidity from banks through the spot gold markets while opposite physical future trade is done at the same time for the trader to receive their gold back and the bank to get their funds. The products are available now for trading.
The first transaction of physical gold product
DGCX also announced that the first transaction was successfully completed between DGCX member Paloma Precious DMCC and one of the most reputable banks in the UAE, as it became the first trader to benefit from access to short-term liquidity using the newly launched products. The physical gold bars changing hands in this transaction are “Emirates Gold”, which are part of the UAE Good Delivery standard.
DGCX EOS Trader Platform
Both of the newly launched products can be traded on the DGCX EOS Trader platform, where traders manage risk, protect value and grow portfolios by buying and selling commodities and currencies.
INR surges
With the Indian Rupee posting consistent growth in its YTD and ADV volumes throughout 2022 and into September, it is clear that DGCX members have continued to pursue differentiation, with INR options acting as a natural extension of futures already listed on DGCX.
DGCX gave traders arbitrage opportunities with USDINR Options with INR Options strike price being inverse of INR Options strike price.