Dubai Gold and Commodities Exchange (DGCX) enjoyed its busiest ever day on Monday, with over 220,000 contracts traded and cleared, valued at $3.85 billion.
It comes after the exchange’s most successful ever month in its 14-year history.
The region’s leading derivatives exchange recorded volumes of 2.382 million lots valued at over 39.2 billion in July, breaking its previous single month trading record of 2.16m set in May 2018.
“We traded 22.5m contracts last year and we’re on track to break that record,” said DGCX CEO Les Male.
The success was fuelled by the escalating trade dispute between the US and China and the announcement on Monday by Indian Prime Minister Narendra Modi to revoke Article 370, which included Article 35A of the Indian constitution, giving some special privileges to the people of Kashmir, and which has been the basis of Kashmir’s complex relationship with India for some 70 years.
Male said: “Here we are in Dubai and a tweet by President Donald Trump on Thursday night about Chinese sanctions, or a statement from the Indian Government on Monday morning, impacts a very successful business based here in the emirates.
“Obviously you put in place an infrastructure that is able to handle shocks – we have a million orders a day on the screen, we’ve got to make sure that our systems can cope with multiples of that so that any Prime Minister or Presidential announcement, which can cause impact and shock to the market, we can handle.”
DGCX, a subsidiary of Dubai Multi-Commodities Centre (DMCC) is an electronic commodity and currency derivatives exchange with over 175 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities and currency sectors.
By Gavin Gibbon