Single Stock Futures grow at Dubai Gold

 The month of July proved to be an eventful one for Dubai Gold and Commodities Exchange, DGCX, the largest and the most diversified derivatives bourse in the region, as it inked pacts for greater collaboration with two leading Abu Dhabi-based entities – the Abu Dhabi Securities Exchange, ADX, and Abu Dhabi Global Market, ADGM.

The Exchange’s recent regulatory recognition and ties with the prominent National entities not only corroborates its unique range of trading and clearing capabilities but also marks a step towards DGCX strengthening its presence in the UAE and wider regional financial markets.

Earlier in the month, DGCX signed an MoU with ADX to create the basis for collaboration on a unified Clearing House in the UAE. More recently, the Exchange and its wholly owned CCP subsidiary, Dubai Commodities Clearing Corporation, DCCC, received the regulatory recognition from ADGM to operate as its first Remote Exchange and Clearing house. This development will enable ADGM domiciled companies to access DGCX’s trading and clearing platforms.

On the volumes front, DGCX’s Single Stock Futures (SSF) reached an all-time high, trading an average daily volume of over 10,000 lots for the first time. The Indian Single Stock Futures recorded the highest monthly volume of 214,769 contracts with Open Interest of 2,128 contracts in July 2017, while recording a year-to-date increase of 274%.

Average Daily Volumes in G6 currency pairs also saw significant growth month-on-month with the Euro, up 41 percent, Canadian Dollar, up 73 percent, and Australian Dollar, up 26 percent. Year-on-year overall G6 Currency product volumes grew by 80 percent.

Gaurang Desai, CEO of DGCX, commented: "The summer months are usually a lackluster period for trading activity, however, it has been an active month for DGCX this year. Not only have we seen greater participation and trading activity in our marketplace but we have also received the regulatory recognition to expand our reach and offer our capabilities to dynamic local bodies such as the ADX and ADGM. Our strategy on Single Stock Futures is starting to gain momentum, as witnessed last month with volume and Open Interest growing in tandem."

DGCX’s recent regulatory recognition from ADGM is part of a wider overall development plan and integration of markets. DGCX is a recognized market by the Monetary Authority of Singapore, MAS, Dubai Financial Services Authority, DFSA, and the Financial Services Regulatory Authority, FSRA. This also ties in with the ESMA recognition that the Exchange received earlier this year.

Gaurang added, "DGCX is embarking on a period of organic growth and we have maneuvered ourselves into a much stronger position allowing us to expand our product range, capabilities, and presence in both regional and international markets."

Source: Wam