The Dubai Gold and Commodities Exchange (DGCX) has registered 11% YTD (year-to-date) volumes growth from the same period last year, trading over 7.5 million contracts.
The Exchange also recorded the highest average monthly Open Interest (OI) in July 2015 with 78,391 contracts, beating the previous high of 59,688 contracts in March 2015. The growth in OI was driven by strong performance in the Exchange's emerging markets contracts particularly on the newly launched Quanto products.
A key indicator of the Exchange's robust performance was the growth in average daily volumes (ADV) during July, which reached an average of 49,673 contracts a day, recording an increase of 15% over same period last year.
Volumes in the Exchange's precious metal segment saw new highs with the recent introduction of Indian Gold Quanto futures. The Gold Quanto greatly complements DGCX's contract on Gold, and allows investors to gain access to the Indian gold market without being exposed to movements in the USD-INR exchange rate.
Together, the recently launched Quanto products on Indian Gold and Indian Rupee accounted 13% of DGCX's July volumes, which reflects significant traction that the new contracts have gained amongst the regional FX and Bullion trader community. While Indian Rupee Futures retained top performer status recording a substantial growth of 13% from last year and continues to be the largest Exchange Traded Derivative (ETD) product globally. DGCX's currency segment saw a strong growth, as YTD volumes in G6 Currency pool grew 22%.
In July 2015, S&P BSE Sensex futures - the first equity index futures that marked the bourse's entry into the equity asset class, completed two years of trading on DGCX Sensex Futures. Structured as a quanto future, DGCX Sensex futures provides a unique opportunity for regional traders to participate in one of the largest and fastest growing Emerging Markets. Since launch, Sensex futures have seen tremendous growth with trading surpassing that of the onshore Sensex futures to which it is referenced. The contract targeted specifically at Non-Resident Indian (NRI) Diaspora in the UAE has seen noteworthy interest from the Dubai based brokers.
The recent volatility in the energy sector drove heightened interest in trading the DGCX WTI futures, which registered a year- to-date increase of 66% compared to the same period last year. The Exchange is planning to expand its product offering in energy sector soon.
Gaurang Desai, Interim CEO of DGCX, said: "Following the exceptional H1 performance, we are delighted to witness another month of strong trading. Our newly launched Quanto products are generating a lot of interest and increased participation from market participants. These contracts' unique value proposition provides significant arbitrage and hedging opportunities from exchange rate fluctuations and makes them an effective risk management tool for offshore investors looking to gain exposure into one of the world's largest emerging markets. As we enter the second half of this year on a promising note, our focus remains on introducing more products that are relevant to investors within UAE and larger GCC region, and expanding our member base and reach internationally."