The Dubai Gold and Commodities Exchange registered a monthly Average Open Interest (AOI) of 120,960 contracts and notional value traded of $11.6 billion in June. With the rising global inflation, political instability and stock market volatility, market participants continued to turn to alternative safe-haven assets during the month.
The sustained strong performance was partly driven by DGCX’s Gold Futures Contract volumes, which delivered year-to-date (YTD) growth of 194%, with average daily volumes (ADV) 168% higher than June 2021. DGCX’s G6 currencies portfolio also continued its strong performance from the previous month with a combined total of 111,658 lots on a YTD basis.
One of the highlights of June was the Indian single stock futures (SSF) which also grew 532% compared with June 2021. Demand for the Indian rupee-backed assets showed continued growth, with the DGCX’s Rupee Mini Volume Contract recording a strong year-on-year (YOY) ADV growth of 26%.
In a significantly important strategic development, DGCX launched the listing of its Israeli Shekel Futures Contract in June. The move follows the receipt of a permit from the Israel Securities Authority (ISA) in 2021, enabling qualified Israeli corporations who trade on a proprietary basis to become members of DGCX and use its trading services. Since May 2021, Israeli members have also been allowed to act as market makers on the DGCX platform.
Demand to Continue
Ahmed Bin Sulayem, Chairman and CEO of DGCX, on Friday said: “During June, we continued to see growth across safe-haven assets, including our G6 Currencies portfolio and gold futures contracts. Given the continued global macroeconomic factors of growing inflation, interest rate rises and fiscal tightening, we will likely see demand for such assets continue to grow over the coming months. The introduction of the Israeli Shekel Futures Contracts adds even more choice as we expand our currency asset classes, diversify our product offering and grant more access to market participants.”
DGCX also participated in the ‘FOW Trading Israel’ event in Tel Aviv on the 28June 2022, which was organised by Futures & Options World (FOW). As a silver sponsor of the event, Louis Hems, Commercial Director of DGCX, appeared in a vital panel discussion about cross-border opportunities.
The DGCX also hosted an exclusive workshop for its members focused on physical gold trades, refineries and bullion traders on the 21 June 2022 and was attended by gold industry experts and business leaders. The workshop offered insights into what the future holds for gold trade in the region and globally. Attendees also took the opportunity to connect, network, discuss and explore business opportunities in the gold market.