DGCX records 486,710 contracts in September as Indian Rupee Options is listed for trading

Press release

Published October 4th, 2011 - 09:37 GMT

The Exchange’s Gold futures contract established an all-time daily volume record of 9,638 contracts on September 26, surpassing the previous high of 8,527 contracts in 2007

The Dubai Gold and Commodities Exchange (DGCX) clocked volumes of 486,710 contracts, valued at $ 21.3 billion, in September, an increase of 211% compared to the same month last year.

The Exchange’s Gold futures contract established an all-time daily volume record of 9,638 contracts on September 26, surpassing the previous high of 8,527 contracts in 2007. Gold futures also reached its highest-ever daily value of $ 486.37 million on the same day, exceeding the previous record value of $ 253.26 million in 2008.

Currency futures, which continued to be the main driver of volumes, grew 290% from last year to reach 440,366 contracts. DGCX also registered substantial year-on-year increases in the precious metals segment in September, with Gold and Silver futures volumes rising by 15% and 56% respectively. The Indian Rupee futures contract continued its exceptional growth, rising 511% year-on-year to reach 427,073 contracts, the highest ever monthly volume since the launch of the contract.

DGCX augmented its already substantial portfolio by listing Indian Rupee Options for trading on September 26. The contract offers Exchange members added flexibility to hedge and manage Rupee currency risks in a transparent and regulated trading environment. DGCX is the only exchange outside India to offer trading in both futures and options in the Indian Rupee.

Speaking about trading activity on DGCX in September, Ahmed Bin Sulayem, Chairman of DGCX said: “In the past few weeks, the markets have witnessed significant volatility in gold prices and currencies. This increased volatility and market uncertainty has increased the need for market players to hedge their price risks in a safe and regulated environment. DGCX offers some of the best tools for managing currency and commodity price risks in the region.”

DGCX year- to- date volumes touched 2,763,489 contracts in September, an increase of 103% over same period 2010. Year-to-date currency volumes grew 163% to reach 2,335,587 contracts this year.

Background Information

Dubai Gold & Commodities Exchange

Dubai has historically been an international hub for the physical trade of not only gold, but also many other commodities and so the establishment of the Dubai Gold & Commodities Exchange (DGCX) was the next logical step for the region and the local economy. DGCX commenced trading in November 2005 as the regions first commodity derivatives exchange and has become today, the leading derivatives exchange in the Middle East.