Dubai’s DGCX sees highest year-to-date volumes in August, record $8 billion open interest


The Dubai Gold and Commodities Exchange (DGCX) ended the summer on a high note, with trading volumes in August as well as year-to-date results continuing to grow nicely.

The vast majority of trading on the DGCX comprises Indian Rupee contracts, and Gold products.

Highlights for August at DGCX include:

  • highest Year-To-Date volumes since inception, growing 43% from last year
  • highest Open Interest positions on 29th August valued at over US$ 8 billion
  • Introduced extremely low-latency solutions for overseas market participants
  • Now provides full-depth market data to support sophisticated trading strategies

Volumes on the DGCX touched close to 13 million contracts, growing 43% from same period last year to record the highest ever volume for this period in over a decade. This year, the Exchange recorded an average volume of 75,516 contracts a day, valued at around US$ 1.70 billion.

The Exchange also registered an impressive average Open Interest (OI) position of 156,965 contracts representing a growth of 167% over the same period last year. On 29th August 2016, the Exchange recorded the highest ever OI of 503, 262 contracts valued at over US$ 8 billion. The OI records indicate the increased trust and participation of market participants on DGCX, the region’s largest and most diversified derivatives bourse.

DGCX’s Indian Rupee traded an average of 41,751 contracts in August, valued at over US $ 1.24 billion. The Indian Rupee options contract set the highest ever average OI record with 5,353 contracts, up 38% from last year, and also registered a 115% year-to-date volume growth from 2015.

Average Daily Volumes (ADV) in DGCX’s gold product suite touched 2,749 contracts in August, growing 15% from last year, while average OI in August 2016 was up by 153%.

Gaurang Desai, DGCX
Gaurang Desai, DGCX

Commenting on DGCX’s performance, Gaurang Desai, CEO of DGCX said:

We are pleased to end the summer on a high note. The last few months saw DGCX set number of volume and open interest records. Yet as we move forward to the rest of the year, our focus remains on development of two key parameters which is (a) introducing more products that are unique, innovative and regionally relevant and (b) expand our membership base to deepen the market outreach.

In August the DGCX also introduced what is known as full-depth market data feed to equip sophisticated traders to understand the market dynamics more efficiently and execute newer trading strategies. The full-depth market data flow disseminates all available market orders in an order book on real time basis for better market visibility. The new data flow works in parallel to existing Best-Five market data feed.

DGCX also offers proximity hosting services along with low-latency trading access with its telecom services partners. This premium service cuts down execution time significantly for global traders. Faster services like this encourage more participation from global market participants to access DGCX markets and in turn increase diversity in participant base.

“We have significantly stepped up efforts on providing world-class connectivity and market accessibility solutions for our global and diversified trading community by constantlyinvesting in our technology infrastructure and technology services. These efforts will go a long way in establishing DGCX and Dubai as a key global trading hub, amongst the likes of Chicago, New York, London, Mumbai and Singapore,” concluded Gaurang.

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Dubai’s DGCX sees highest year-to-date volumes in August, record $8 billion open interest

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