Dubai’s commodities exchange sets new volume records

04 de julho de 2016

São Paulo – Dubai Gold and Commodities Exchange (DGCX) registered record-breaking trade volumes in the first half of this year. It surpassed 9.5 million contracts, an increase of almost 50% over the same period of 2015, according to information by Emirates News Agency (WAM). The commodities exchange, founded in 2005, had on June 24 the highest trading volume ever with 150,570 contracts, which were worth USD 3.55 billion.

That Friday, June 24, was the day after the referendum that decided for the United Kingdom’s exit of the European Union, or Brexit. According to WAM, the uncertainty caused by the decision in international markets was the factor behind the increase in business at DGCX.

“Brexit, an event of seismic proportions has triggered extreme volatility in world markets over the weeks running up to actual vote and result days, said DGCX`s CEO, Gaurang Desai, according to WAM. According to him, in this period investors looked for ways to reduce their exposition to risks. “DGCX is now considered to be an extremely important trading venue helping investors protect their trading portfolios by effectively mitigating risk and market exposure which was evident with DGCX breaking its all-time daily volume records”, added the executive.

According to WAM, the exchange witnessed a strong upswing across all its asset classes. Commodity prices rebounded on speculation that supply disruptions and production cuts are taking away the surpluses that caused the price collapse previously.

According to the agency, with signs of improvement from global demand, the precious metals segment registered a significant trade increase in the first six months of this year with 422,537 contracts, up 104% over the same period of 2015. Other strong increases also occurred in the volume of future contracts of currencies such as the Indian rupee, the pound and euro, and oil.

*Translated by Sérgio Kakitani