Currencies lead December growth on DGCX growing 25% YoY but off 8% from October highs

Gold trading volumes on the Dubai Gold and Commodities Exchange (DGCX) reached 41,945 contracts in December, registering a significant growth of 14% year-on –year. In December 2014, DGCX volumes witnessed a growth of 25% from the same period last year, recording total monthly volume of 962,438 contracts valued at $ 27.84 billion. The Exchange’s average daily volume (ADV) grew 19% year-on-year reaching 45,830 contracts in December 2014.

The currency segment led the year-on-year growth trading 897k contracts, an increase of 25% from December 2013. Indian Rupee Futures, which recorded the 3rd highest Average Daily Open Interest during the month of December, grew 21% from the same period last year while the Mini Indian Rupee Future grew 69%.

The DGCX’s metals segment recorded a 16% increase year-on-year while the hydrocarbon sector and the equity indices segment grew 45% and 95% respectively.

The year 2014 saw DGCX further diversifying its product portfolio with the introduction of several new contracts. Early in the year, DGCX launched the region’s first ever Plastics contract. Further expanding its emerging market product portfolio, the Exchange re-introduced the Indian Rupee Option contract, launched two MSCI India Index contracts and listed two new pairs of Mini Indian Rupee Cross Currency Futures. The Exchange ended the year on a high note, launching three new currency contracts – Russian Ruble Futures, Korean Won Futures and South African Rand Futures.

Gaurang Desai, Interim CEO of DGCX said: “In 2014, DGCX made a big push to further expand its emerging market currency and index based-products and also introduce unique products such as the Plastics Futures. The Exchange also upgraded its technology to provide additional functionalities and enhanced efficiencies to the member community. The upgrade also made it possible for DGCX to offer trading, clearing and settlements in different currencies, including UAE Dirhams.”

“In 2015, our aim is to further grow our member community and introduce more innovative contracts starting with the spot gold which will be launched early this year. In addition, we are also looking at listing more currency, equity and soft commodity related products,” he added.

In 2014, DGCX significantly grew its member community and expanded its marketplace with several new members from the UAE, Asia and Europe joining the Exchange. DGCX also signed an MoU with the China Financial Futures Exchange (CFFEX) with the objective of facilitating closer cooperation in areas concerning risk management, business strategy, market surveillance and new product development.

The Exchange continued to receive global recognition for its growth and product innovation in 2014. DGCX was named ‘Exchange of the year 2014’ in the Middle East and Australia, for the second year in a row by the Futures and Options World (FOW).

2014 Highlights

  • DGCX launched the region fist ever Plastics Futures contract on February 28
  • On June 16, DGCX completed the upgrade of its technology platform which involved improvements related to multi-currency trading, listing of options and also enhanced trading and clearing flexibility and global connectivity
  • DGCX re-introduced the Indian Rupee Options contract on July 18
  • The highest-ever Average Daily Open Interest was achieved in July 2014 with 54,718 contracts
  • In August DGCX moved to new offices in JLT
  • DGCX launched two new pairs of Mini Indian Rupee Futures on October 26
  • On October 17, DGCX listed two MSCI India Index Futures contracts
  • On December 2, the Exchange introduced new settlement and collateral deposit facilities in UAE Dirhams via the DCCC
  • On December 8, DGCX signed an MoU with China Financial Futures Exchange (CFFEX)
  • DGCX launched three new Emerging Market currency futures –Russian Ruble, Korean Won and South African Rand, on December 26.
  • DGCX’s Annual INR Futures Market share increased in 2014 by 5.22% from 29.13% in the year 2013 to 34.35% in the year 2014.

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