DGCX volume crosses 1-m contracts

Written by Commodities Bureau | Mumbai, Oct 6 | Updated: Oct 7 2008, 05:52am hrs
The Dubai Gold & Commodities Exchange (DGCX) on Monday announced that the year-to-date volume has for the first time, passed a record-breaking one million contracts, up 52% on last year. Valued at $52 billion, year-to-date volumes at 10.20 lakh contracts demonstrate increasing investor preference for DGCX. The milestone was supported by the recent record performance in the third quarter with 3.85 lakh contracts traded, valued at $20.5 billion. Higher trading activity was led by currencies, precious metals and crude oil, according to an exchange release.

Gold futures rose by 37% year-to-date (January-September), reaching 6.95 lakh contracts, whilst the average daily volume for gold futures stood at 3,200 contracts in September, up 51% as compared to September 2007. In currencies, the euro led the pack with 94,000 contracts year-to-date, up 240% compared with the corresponding period last year.

Malcolm Wall Morris, chief executive, DGCX, said that intensified volatility in the global financial and equity markets had led market participants to shift resources to areas such as commodities and currencies. In the current high risk climate, commodity derivatives are offering the opportunity to diversify and achieve a balanced portfolio, he said.

The record third-quarter volume at DGCX also endorsed the benefits of transacting and clearing transactions via the well-regulated and low-risk environment of an exchange and clearing house, Wall Morris said.