Trust Securities DMCC, a clearing broker member on the Dubai Gold and Commodities Exchange (DGCX), recorded all-time high in the monthly rupee-dollar futures contract volumes in March, with a total trading of 4.95 lakh contracts.
It registered a rise of 257% compared to the trading volume in March, 2011, an all-time high since the contract began trading in 2007, said Bruce Powers, Head of Research at Trust Securities DMCC.
Trading in the rupee was a significant contributor to the overall volume increase at DGCX for both March as well as the first quarter of 2012, he said.
Total Exchange volume was up 141% from the previous year with 5.50 lakh contracts traded, while first quarter volumes improved by 126% to 15.45 lakh contracts.
He said investors like to see healthy volume levels in any market.
DGCX is the only exchange trading the rupee-futures contract outside of India, which makes it attractive to non-resident Indians for use either as part of an investment strategy or for hedging currency exposure in business dealings, he added.
Powers said Trust Securities continues to see growing interest in trading the rupee contract from its clients in the UAE as well as the wider region.
"As activity levels reach new record levels each month, it draws attention helping to continue to push liquidity even higher," he said.
Powers said increasing volumes help in attracting international investors.
"As volume levels increase, it helps to attract other international investors who may be interested in trading opportunities. We anticipate volume levels in the Rupee futures contract to continue to grow on the DGCX."
Trust Securities has been leader in the commodity market in the UAE for close to 10 years and has recently established two sub offices in India and Sri Lanka.
It is a clearing member of the DGCX, an initiative of the DMCC, Financial Technologies (India) and the Multi Commodity Exchange of India Ltd (MCX), and a supply chain manager of Agricultural commodities throughout West Asia and North Africa region.
