UAE Commodities Exchange Hits New Record in Daily Trade Volumes

Driven by an increase in Indian Rupee and Gold futures trading, the Dubai Gold and Commodities Exchange (DGCX) registered a new daily volume high of 51,943 contracts on Wednesday, May 16, 2012. The new daily volume record surpassed the previous best of 42,484 contracts set on May 9, 2012. The Exchange also set a new daily value record, with US $ 1.98 billion worth of contracts traded on Wednesday.

Wednesday also saw DGCX Indian Rupee futures registering yet another daily volume record of 44,821 contracts on the back of increased trading in back-month contracts - contracts that have more than one month to expire and offer tighter spreads. Gold futures, another key contributor to the daily record, registered a volume of 3,755 contracts on Wednesday, driven by heightened trading activity set off by a spike in the price Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term of the precious metal. On Wednesday, May 9, DGCX Gold futures achieved its highest daily volume of 6,068 contracts in 2012.

Gary Anderson, CEO of DGCX said: "We are very happy to see increasing back-month trading in Indian Rupee futures, which expands the opportunities available for Members to both manage price volatility and profit from price movements in the Indian Rupee. We are also encouraged by the volume increase in DGCX Gold futures, which has been enhanced by recent changes we made to the contract aimed at further boosting Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and facilitating tighter spreads. In particular, the introduction of a 'matching intent' facility that allows both physical and cash settlement of trades, has made the product even more attractive to retail and institutional traders. These changes are part of our constant endeavour to improve our contracts based on feedback from our member community and the market."

This year, DGCX surpassed the two million contracts mark in just 82 trading days - the earliest it has crossed this figure in any year since inception. Year-to-date volumes on the Exchange, at the end of April, reached 2,105,680 contracts, valued at $86.5 billion, a 131% rise from 2011. Last month, DGCX also listed the region's first Copper Futures contracts which got off to a robust start, trading 15,582 contracts in the first seven days of trading.

Indian based brokers have been expanding their foothold via Duabi, giving them flexible regulations, access to global markets and domestic volumes.