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DGCX Records 33pc Growth in Volume

DUBAI - Dubai Gold & Commodities Exchange (DGCX) on Monday reported 33 per cent growth in overall volumes in January on the previous month.

The exchange said volumes for the first month of this year had started on an encouraging note despite the challenging global economic environment.

Gold and currency futures emerged as the key drivers of volume for the month, taking volumes to 38,366 contracts in January 2009 compared with 28,772 contracts in December 2008. Average Daily Volume in January was 1,827 contracts, 21 per cent above the previous month. The Exchange’s strategy of offering a diversified product portfolio has paid off, said Nishat Bandali, Chief Marketing Officer, DGCX. “The positive trend in January volumes indicates a fair start to this year.” Bandali added that given the current economic climate, market participants are more inclined to transact derivatives on DGCX, in order to reduce counterparty credit risk. “Operating the region’s sole commodity and currency derivatives clearing house, DGCX is well positioned to meet this trend.”

Recently DGCX’s Euro Futures volume recorded a daily high reaching 2,963 contracts, valued at $191.51 million - for the first time in its three-year history. February 4 was the busiest day for Euro futures on DGCX as trades accounted for 75 per cent of the Exchange’s total daily volume, demonstrating the growing importance of currencies in its product range.

The previous high for DGCX Euro futures was 1,748 contracts, valued at $138.18 million in 
July 2008.

· abdulbasit@khaleejtimes.com