The region’s largest derivatives bourse, the Dubai Gold and Commodities Exchange (DGCX), saw brisk trading in the month of March, with volumes aggregrating to 1.4 million contracts, valued at USD $33.5 bn. The Average Daily Volumes touched 61,471 contracts in March, with a high of 143,312 on March 27th.
Percieved global risks ahead of multiple European elections, policy decisions regarding healthcare and environmental bills in the U.S, and most recenty the trigerring of Article 50 and thus the formal start of the Bexit process have led to a jump in trading activity, specifically in DGCX’s G6 currency portfolio. The Exchange recorded year-on-year growth in Pound Sterling (157%), Japanese Yen (369%), Canadian Dollar (188%) and Swiss Franc (93%).
Q1 volumes in Indian Rupee Options saw a significant increase of 68% from the same period last year. The Indian Rupee Options contract also recorded the highest monthly Average Open Interest of 30,174 contract, while Sensex Futures recorded the second highest monthly Average Open Interest of 1,164 contracts in March 2017.
Gaurang Desai, CEO of DGCX, commented on this month’s performance:
“The brisk trading pattern we have witnessed in the past month reiterates that in times of volatility and uncertainty investors flock to regulated and transparent markets like DGCX to hedge against rapid price movements esepcially in global currency pairs.
If you observe the trading trends in the last few months, it is apparent that the European elections, policy decisions in the U.S. and the initiation of formal Brexit negotiations, has created a lot of uncertainty in the minds of investors, which also then impacts equity markets and causes them to underperform. In times like these, derivatives markets play a pivotal role in protecting investors and traders by providing them with opportunities to hedge their risk.”