DGCX completes first month of successful trading

The Exchange recorded the highest volumes on 23rd December 2005 - 723 kgs of gold futures contract valued at USD 11.70 million were traded, the previous highest volumes were recorded on 22nd December 2005, when 693 contracts valued at USD 11.18 million were traded.

Mr. Ahmed Bin Sulayem, Director, DGCX said,

"The DGCX has unquestionably delivered on its promises in its first month of operation. This is an astonishing performance and we are proud to have an international commodities exchange in Dubai which measures up to the best in the world.

Dubai is one of the most important trading centres in the world, and the DGCX as an organized market and facilitator for the trading of various commodities will further develop this position."

The current open interest of 541 i.e. the number of contracts where members have either bought or sold futures contracts and not closed them out, shows the confidence of the market participants in the systems and procedures set up by DGCX. The highest recorded open interest during the month was 812 on 9th December 2005.

Even though gold prices saw huge fluctuations, some $50 in 20 days, the risk management and surveillance systems of the exchange stood up to the volatility experienced in the gold markets. The settlement of these trades was effortlessly carried out on the T+1 day basis through Dubai Commodities Clearing Corporation (DCCC), a wholly owned subsidiary of DGCX.

With rising liquidity and lower spreads on DGCX, brokers, hedgers, traders and investors are increasingly enthusiastic about the exchange. The feedback of DGCX members has been very positive and encouraging and members have quickly adapted to the fully electronic form of trading and amazed at the ease with which they can put through orders.