As we have seen in our previous articles, high volatility in forex market in January brought mostly optimistic numbers in operation metrics for most of the brokers. Increase in trading volumes, related to volatility opened the question for wider hedging.
Hedging on the forex market, mostly in connection with emerging market currencies (Indian Rupee, South African Rand) gained on its attractivity. Volumes on trading of Rupee Options jumped by 352% in January 2016 vs. January 2015.
The Dubai Gold & Commodities Exchange (DGCX) has reported on Thursday that January saw an incredible start to 2016 with January figures showing an Open Interest rise of 26% in comparison with the same month of the previous year.
The recently launched Dubai Spot Gold Contract traded 1516 kgs in January 2016, the DCCC has also facilitated delivery of 73 kgs of physical gold till date. Jewelers and other bullion participants have started to utilize Dubai Spot Gold to lock-in the price and manage physical supply chain needs using the unique roll-over mechanism. Flight to safety also saw the India Gold contract volume double during January 2016.
15 Single Stock futures on bluechip USA stocks like Facebook, Google, Apple, JP Morgan and Microsoft have been launched by Dubai’s DGCX within its stocks segment offering, in January 15. 10 Indian stocks were part of this launch and included Axis Bank, Tata Motors, TCS, Infosys, Reliance, HDFC Bank, SBI, ICICI, L&T and Maruti Suzuki.
The CEO of DGCX, Gaurang Desai,stated : “Against the backdrop of global economic turmoil and volatility across market segments, investors and corporates need to be aware of the important role derivatives futures exchanges such as DGCX play as a regulated platform to hedging their risk and optimally manage their balance sheets. With crude oil prices falling below USD30 per barrel in January, it is becoming increasingly important for economies, particularly oil reliant ones, to look at ways of hedging their risk and managing their fiscal deficits.”
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