As the Dubai Gold and Commodities Exchange unveils another rise in volumes, Galen Stops looks at what is behind the exchange's recent success.
2012 was a year that most derivatives exchanges would rather
forget. But for the Dubai Gold and Commodities Exchange it was
the best year ever as volumes grew 138%.
The Dubai Gold and Commodities Exchange was founded in 2005 and
had been growing steadily, if not spectacularly, until the
beginning of 2011. That year it more than doubled the 2010
volumes, but with 4m contracts traded for the year, it was
still a small exchange.
In 2012 though, DGCX managed to replicate this growth, once
again more than doubling its yearly volumes to over 9.5m
contracts. This is a remarkable increase and volumes are
continuing to grow in 2013. Q1 volumes were 112% higher this
compared to last year while March volumes were up 95% and April
volumes up 139% year-on-year. In May it posted a 73% rise in
volumes for May to a record
1.4m contracts, valued at $48.5bn.
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