DGCX November volumes pop 19% YoY as the exchange taps Cinnober for new settlement service

November volumes on the Dubai Gold and Commodities Exchange (DGCX) grew 19% from the same period last year, trading 981,925 contracts, valued at US 28.5 billion. DGCX’s flagship contract, Gold Futures traded 46,066 contracts in November, recording a significant growth of 22% year-on-year and rising 39% from last month.

DGCX’s currency segment grew 18% year-on-year, accounting for 93% of the total monthly volume with 910,608 contracts traded. The Exchange also saw brisk trading on the new cross-currency Mini Indian Rupee Futures contracts in its first full month of trading in November. Mini INR Futures denominated in British Pounds registered 1607 contract while Mini INR Futures denominated in Euros registered 2,391 contracts. DGCX Sensex Futures also recorded a 47% growth from last year.

Gaurang Desai, Interim CEO of DGCX said: “The continued volume growth in Gold Futures reflects the growing interest from global traders in using the contract to effectively hedge against price fluctuations. This augurs well for the launch of our spot gold contract early next year. It is our constant endeavor to develop innovative products based on the requirements of our market participants and provide them with services and the infrastructure to trade seamlessly. We are looking to expand our Emerging Market portfolio with three new currency contracts in the immediate pipeline.”

Another piece of news from the Middle East exchange being reported this week is that DGCX and its central counterparty service provider, the Dubai Commodities Clearing Corporation (DCCC), has launched a new settlement service intended to enhance trading and cost efficiencies for clearing members. The EOS platform will be supported by technology supplier Cinnober.

DCCC has now activated the multi-currency clearing and settlement facilities that are part of Cinnober’s RealTime Clearing solution. Clearing members are now able to settle their transactions in several different currencies. In addition, DCCC will be able to receive fixed deposits and bank guarantees as collateral in several currencies. The new version of the system also enhances the collateral management model enabling members to pledge more kinds of collateral to DCCC.

The core trading and clearing applications of DGCX technology infrastructure are built on Cinnober’s TRADExpress Trading System and TRADExpress RealTime Clearing.

“As technology partner to DGCX over the past years, we are of course extremely pleased that their award-winning track record is so clearly linked to their technical systems,” says Veronica Augustsson, CEO of Cinnober. “Real-time clearing is very much in focus and DGCX’s new capabilities exemplify in a good way the exchange’s visionary and expansive thinking.”

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