DGCX eyes 'momentous' year after record 2019

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Aden - Yasmine El Tohamy - In 2020, the exchange aims to continue its growth trajectory and build on the strong platform it established in 2019.

The region's leading derivatives exchange traded 23.06 million contracts in 2019.

The Gold & Commodities Exchange (DGCX) broke its annual volumes and average open interest (AOI) records last year, making 2019 its most successful year since its launch in 2005.

The region's leading derivatives exchange traded 23.06 million contracts in 2019 - beating its previous record of 22.26 million contracts traded in 2018 - with the DGCX's wholly-owned clearing house, the Dubai Commodities Clearing Corporation (DCCC) clearing over $866 billion in notional value.

In a statement, the DGCX - the only exchange allowing global participants to trade, clear and settle transactions within the region - also recorded its highest yearly AOI in 2019 with 324,803 contracts, up from 284,736 contracts in 2018.

Open interest refers to the total number of outstanding contracts at the end of the trading day and is a strong indicator of an Exchange's success.

Les Male, chief executive officer of the DGCX, said 2019 was DGCX's second consecutive year of record volumes.

"The all-time high average open interest is a testament to our continued efforts to widen investor participation and enhance liquidity in our contracts. To eclipse our achievements from 2018 is an outstanding feat, and demonstrates the effectiveness of our growth strategy to appeal to a broader range of market users seeking protection and various hedging mechanisms to mitigate their risk," said Male.

In 2020, the exchange aims to continue its growth trajectory and build on the strong platform it established in 2019.

"We have a considerable pipeline of products ready to launch subject to regulatory approval, including Mini-Gold Futures and FX Rolling contracts. We are confident that 2020 will be a momentous year for the DGCX, and we look forward to the journey ahead in what promises to be an extraordinary 12 months marked by numerous milestones and achievements for Dubai and the wider UAE," said Male.

Male said there has been a continued growth in the exchange's contracts as an increasing number of investors recognise the value they offer for hedging purposes during periods of uncertainty.

"This has been particularly apparent over the last 12 months, in which we saw substantial global volatility triggered by a series of notable events including the US-China trade war, ongoing Brexit negotiations and the Federal Reserve cutting interest rates for the first time in over a decade," said Male. - [email protected]

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Issac John

Editorial Director of Al Khaleej Today, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Al Khaleej Today. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.

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