DGCX contracts rise 26% in 2008

Written by Commodities Bureau | Mumbai | Updated: Jan 9 2009, 03:38am hrs
The Dubai Gold & Commodities Exchange (DGCX), the Middle Easts leading derivatives exchange, recorded 26% year-on-year growth with 1.14 million contracts, valued at $57.5 billion, traded in 2008.

The increase in activity during the year was led by trading in futures on crude oil, currencies and precious metals. Average daily volume touched just over 4,500 contracts in 2008, an increase of 28% compared with 2007, exchange release said.

Since inception in November 2005, over 2.6 million contracts have been traded with a value in excess of $107 billion. Malcolm Wall Morris, Chief Executive Officer, DGCX, noted that volatile global markets and the tightening of credit have clearly altered the economic framework in which DGCX operates.

However, at the same time, the economic crisis has demonstrated the importance of transacting derivatives business via an exchange and clearing house in order to reduce counterparty credit risk. DGCX is uniquely positioned to meet this requirement by operating the Middle Easts sole clearing house, he said.

The core strength of DGCX lies in its understanding of customers' needs and its positioning as the exchange offering the right products, in the right place and at the right time, Ahmed bin Sulayem, chairman, DGCX said, at the Annual General Meeting of DGCX held in Dubai last month.

In May, the launch of West Texas Intermediate (WTI) and Brent crude oil futures surpassed all previous DGCX product opening day volumes. In the month following, the launch of crude oil futures, 36,500 contracts ($4.9 billion) were transacted, making the crude oil launch the most successful ever for DGCX. July 2008 was the best month since the exchange opened for trading in 2005, with 1,87,000 contracts (worth $12 billion) and a new daily record of over 14,000 contracts.

Growth path

Average daily volume at 4,500 contracts

In 2008 trading volume reached 1.14 million contracts