Investor Appetite For DGCX Currency Products Continues to Grow Ahead of Launch of FX Rolling Futures Contracts
The Dubai Gold and Commodities Exchange (DGCX) remains to see intense investor cravings for its currencies portfolio against a backdrop of ongoing foreign exchange (FX) volatility. In June, the DGCXs G6 currencies portfolio recorded year-on-year (Y-O-Y) volume growth of 265.56%, and has now recorded year-to-date (Y-T-D) volume growth of 456.69% compared to the same period last year. British Pound and also Yen Futures Contracts were the most notable performers, signing up Y-O-Y Average Daily Volume (ADV) growth of 307.58% and 1010.45% respectively.
The energetic efficiency of the DGCXs collection of currency products comes ahead of the launch of three FX Rolling Futures Contracts, which will undoubtedly provide investors with additional possibilities to successfully hedge their direct threat exposure, especially during this duration of enhanced volatility. The three FX Rolling Futures contracts Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD) against the US Dollar (USD) will go live on Monday 6 July 2020.
Les Male, chief executive officer of DGCX, stated: The FX market throughout the region has been collecting rate in the last few years, but its come to the forefront over the last couple of months in regards to investor hunger as well as maturation. This is especially real in the UAE, which serves as a local centre for retail and institutional investors and has strong governing facilities in place. Today, the most significant variable affecting money flows is the Pandemic and the uncertainty its triggered around the world. Yet, were also seeing a variety of various other geopolitical occasions having a considerable impact on currencies varying from Brexit profession settlements to problems that the United States, as well as China profession talks, might fail once more.
Following the DGCXs launch of three FX Rolling Futures Contracts next week, the DGCX plans to expand its portfolio of Indian Rupee (INR) Futures Contracts with the introduction of a Weekly INR Futures Agreement against the United States buck (USD) later on this month. The new agreement will undoubtedly provide market individuals with short-term hedging and arbitrage possibilities and will track the worlds largest pool of overseas liquidity for exchange-traded INR-USD currency items that the DGCX deals.
The DGCX continues to play a pioneering role in the development of MENAs financial markets. Dubais strategic geographic location between the Far East and Europe allows us to serve as a unique hub for global Forex flows. With the launch of these new products, we hope to enhance the UAE further and the wider regions rapidly growing influence and importance in the global FX market, Male added.
Complete volumes on the DGCX in June completed 948,377, valued at USD 23.96 billion. The DGCX last month also tape-recorded Ordinary Open Rate of interest (AOI) of 145,493 contracts.
