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Reaffirming interest in the currency futures, Dubai Gold & Commodities Exchange (DGCX) recorded the highest daily volume ever on 7 August for all currency futures at 7,655 contracts, valued at US $583.86 million.
Currencies accounted for a significant part of total volume. The GBP/Dollar future witnessed the highest volume this year as market participants looked to hedge themselves against volatility in the contract. GBP/Dollar futures recorded 3,498 contracts, valued at US $292.73 million on 7 August. Volume for Euro/Dollar touched 3,932 contracts, valued at US$281.24 million; whilst Indian Rupee reached 176 contracts, valued at US$7.35 million.
“DGCX is the only exchange in the region to offer currency futures contracts. Furthermore, ongoing volatility in financial markets, tighter spreads and improved volumes are encouraging more participants to trade our currency futures,” said Malcolm Wall Morris, Chief Executive Officer, DGCX. “The latest record for currency volumes reaffirms that this segment is a viable alternative asset class for local and international participants. Traders are also seeing the benefit of transacting business on an Exchange such as DGCX to reduce their counterparty credit risk,” he added.
In July, year-to-date currency volume on DGCX reached 272,000 contracts, representing an increase of 33% on last year and value of US $1.34 billion. While year-to-date volume for Euro/Dollar futures rose 130% to 174,000 contracts, Indian Rupee/Dollar futures grew 315% to 31,000 contracts.
