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DGCX Annual Trading Volume Surges by 32pc

The exchange said it reaffirmed the important role of derivatives in 2009 of managing risk during uncertain market conditions. Surpassing the 2008 total volume of 1.142 million contracts, DGCX recorded an increase of 31.6 per cent in 2009 — the highest annual volume to be achieved since inception.

“The volatility in global markets and the tightening of credit rendered risk management, security and market transparency a priority among investors,” said Ahmed bin Sulayem, Chairman of DGCX.

Currencies and crude oil were the key drivers for the rise in annual volume. While currencies recorded a 132 per cent increase compared with last year, full year volume for crude oil futures rose by 140 per cent, DGCX said.

December monthly volume on the exchange came in at 181,105 contracts — a six-fold increase from December 2008. December volume included 75,591 gold, 89,123 currency and 10,083 WTI futures contracts. Year-on-year volumes of currency, crude and gold futures grew by 524 per cent, 509 per cent and 489 per cent respectively in December.

Average daily volume reached 5,921 contracts in 2009 — an increase of 30.6 per cent compared with 2008. Since inception in November 2005, DGCX has seen trading of over 4.1 million contracts with a value in excess of 
$185 billion.

“In four years, the exchange’s portfolio has grown quickly to include the key economic indicators of precious metals, energy and currencies on one trading and clearing platform. The increase in year-on-year volumes is an encouraging achievement and confirms that our offering meets the requirements of market participants,” Eric Hasham, chief executive officer of the exchange.

In 2009, DGCX focused on improving liquidity, tightening prices and educating participants to better understand the trading and price risk management benefits of derivatives. The exchange witnessed a strong response from new and existing participants during workshops held throughout the year.

“We are confident that there is significant potential to grow existing contracts and launch new products, to further capture market opportunities and liquidity in the Middle East and beyond,” 
Hasham said.

On February 27, 2009, for the first time, volume for Euro/Dollar futures touched almost 7,000 contracts valued at $427 million. August 7, 2009, saw the highest daily volume ever for all currency futures at 7,655 contracts, valued at $583.86 million. Total November 2009 volume hit an all time monthly high of 190,554 contracts, valued at $10.86 billion — up 345 per cent year on year, led by gold and currencies.

· abdulbasit@khaleejtimes.com