Amid a sharp decline in demand for Indian rupee futures, traded volumes on the Dubai Gold and Commodities Exchange (DGCX) fell by 25 per cent in the first half of the year.
The DGCX registered a total of 5.75 million contracts in the first six months of the year, compared with 7.72 million during the same period last year.
The value of contracts traded fell 36 per cent to just over US$172 billion.
A spokesman for the exchange said that the declines were in line with global trends, as lower volatility in traditional markets including bonds and commodities tempered demand for more complex derivatives.
The fall in volumes on the DGCX was led by currency futures, in which there were 28 per cent fewer trades in the first half of the year compared with a year earlier. The total number of currency futures traded fell to 5.34 million, from 7.42 million previously.
Indian rupee futures, which accounted for nearly 80 per cent of trades in the period, fell by 32 per cent year-on-year to 4.57 million.
The decrease in currency contract volumes was partly offset by a 7 per cent rise in precious metal contracts over the period to 283,138 contracts, valued at $11bn.
While gold contracts fell by 3 per cent, silver contracts rose 454 per cent on the same period last year.
Despite falling volumes the DGCX is planning to further increase its currency contract offerings, with the launch of South African rand, Russian rouble and Korean won futures scheduled for later this quarter.
In addition to the new currency products, the exchange is planning to introduce a spot gold contract, the first of its kind in the Middle East, as well as an MSCI India Index futures contract, in the coming quarters.
jeverington@thenational.ae
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