DGCX volume rises 39% to 101,215 contracts

The Dubai Gold and Commodities Exchange (DGCX), the UAE-based commodities derivatives market, said 101,215 contracts were traded on the exchange in March, an increase of 39 per cent on the previous month and despite weak global market conditions. The exchange said volume in March 2009 was the highest ever achieved in March since inception. The volume growth was driven by increased volume in currency futures, especially in euro-dollar and sterling-dollar, which grew by 37 per cent and 136 per cent respectively. DGCX Indian rupee-dollar, gold and WTI futures also recorded higher activity during March compared with the previous month. The first quarter of 2009 has demonstrated a positive start to the year for DGCX, following lower volumes in the last quarter of 2008. Month-on-month volumes have been increasing steadily. Total first quarter volume for the exchange was 212,485, 70 per cent up on the previous quarter, but down by 33 per cent on the same period last year. "Much of the volume increase has been led by the growing interest and demand for currency futures. Volatility in currencies has encouraged market participants to hedge their exchange-rate risk on DGCX in order to better manage their exposure." said Malcolm Wall Morris, Chief Executive Officer, DGCX. "Despite weakness in global market conditions, the month-on-month volume growth and strong first quarter performance shows that DGCX is moving in the right direction so far this year and demonstrates the appeal of our value proposition and product portfolio," he said. DGCX is 51 per cent owned by government-owned by Dubai Multi Commodities Centre, with India's Financial Technologies Group and MCX of India owning the remaining 49 per cent.