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DGCX Expands Global Presence with Trading Technologies

Dubai, March 07 2017 – The Dubai Gold & Commodities Exchange (DGCX) today announced that Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, has become an approved Independent Software Vendor (ISV) on the Exchange.

With DGCX access now available on the TT® trading platform, commodity and currency traders can utilize TT’s extensive and robust functionality, including the TT Mobile applications for iOS and Android devices, to chart and trade the full range of DGCX products. This link also gives TT’s global users access to the world’s largest exchange traded Indian Rupee liquidity pool.

Gaurang Desai, CEO of DGCX, commented, “Through our partnership with TT, market participants can now have access to TT’s fully integrated suite of high-performance trading tools and enhanced execution services. Additionally, TT’s ease of deployment, high-speed network and on-the-go access delivers greater value to our market participants. Our partnership with TT reaffirms our commitment to offer our Members access to the world’s leading trading technology solutions. The empanelment of Trading Technologies will greatly boost our presence in global markets and also enable us to provide more tailored solutions to our members across the globe.”

This new connection to DGCX provides TT’s current customers with access to the largest and most diversified derivatives marketplace in the Middle East, and the only exchange-traded Indian Rupee Options product offered outside of India.

“Our new link to DGCX advances TT’s continued growth in the Middle East and greatly expands our international trading community,” said Steve Stewart, Managing Director, EMEA, Trading Technologies. “This partnership further facilitates the distribution of TT to traders in the region, meeting their demands for sophisticated trading technology executed through a secure, reliable infrastructure.”, added Steve.

DGCX is the first exchange to go live in TT’s new London data center, which is located within Interxion’s data center campus. This new point of presence will provide TT users with regional resiliency, enhanced performance and easy access to exchanges, expanding horizons throughout Europe and the Middle East.

About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives. 

DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  For more information: www.dgcx.ae

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DGCX Volumes Continue Upward Trajectory in February

Dubai, March 02 2017: Daily Volumes on the Dubai Gold & Commodities Exchange (DGCX) in February traded 62,844 contracts per day. Trading activity on the Exchange’s Indian Products remained consistent on the back of increased volatility in Indian markets due to the Union Budget announcement made at the beginning of the month and the ongoing state elections.

The DGCX Indian product suite, particularly the Indian Rupee Options contract recorded notable year-on-year growth of 92% with just under 50,000 lots trading and also recorded the highest monthly Average Open Interest (OI) of 23,275 contracts, signifying increased interest and liquidity. Dubai India Crude Oil futures also registered the highest monthly volume of 5,980 contracts in February 2017. This helped Energy products on DGCX record a combined volume of 17,139 contracts. This highlights that investors and traders have started reacting favorably to the DGCX value proposition in offering global products in Energy, Gold and Currencies under one roof in a capital efficient, cost effective and safe manner.

Gaurang Desai, CEO of DGCX, commented: “Indian Union Budget proposals and the ongoing state assembly elections have stirred volatility in Indian markets. Since many of our products are geared towards offshore investors, we often see spikes of trading activity in our Indian referenced contracts, which highlights the importance of these products for hedging purposes in a period when financial markets are experiencing sharp volatility.

Volatility is likely to trend higher through the course of the year as markets react to a range of unknowns including the anticipated US Federal Reserve rate hike in March, the upcoming European elections and the impact of US policy changes. In light of these events, we will continue to strongly push forward our agenda of providing market participants with a diverse array of products and solutions which will not only help them to effectively manage their risk, but also protect them from rapid market fluctuations and the prevailing economic uncertainty.”

During the month the DGCX also announced its Trading Campus initiative in collaboration with Envision Training Centre that is aimed at education and creating awareness about financial products, derivatives trading, and various trading techniques. This initiative will play an important role in furthering DGCX’s goal to ensure that traders and investors are not only able to trade responsibly but also are equipped with the skill-set needed to trade financial products.

DGCX plans to list more Single Stock Futures as well as Energy products in the second quarter of 2017 which will attract more investors and increase participation on the Exchange’s trading platform.

About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives. 

DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  For more information: www.dgcx.ae

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DGCX Sees Strong Start to the Year On the Back of Continued Global Volatility

Dubai, February 02 2017: The Dubai Gold and Commodities Exchange (DGCX) continued to be a safe haven for investors looking to insure against volatility stirred by a series of significant political events, with the Exchange trading an aggregate 1.37 million contracts in the month of January, valued at US $ 33 billion.

In the USA, President Trump’s inauguration and his administration’s immediate policy changes along with the UK Supreme Court’s ruling on Brexit have caused financial market volatility. These events have had a significant impact on DGCX‘s trading activity, resulting in the Exchange recording its highest daily trading volume for 2017 on January 25 with 117,637 contracts, valued at US $ 2.9 billion. The British Pound and Yen futures witnessed a substantial year-on-year growth in volumes, up 87% and 757% respectively.

DGCX gold futures also recorded an impressive increase of 56% with the precious metal witnessing major price fluctuations in the lead up to the Chinese New year.

DGCX’s Indian products particularly, Indian Rupee Options and Quanto contracts registered strong year-on-year growth of 176% and 127% respectively, reflecting on the positive tone as India and the UAE elevated their strategic partnership. In addition, investor appetite was strong for DGCX’s Indian Single Stock futures which grew by 29% in comparison to the same period last year. Another currency pair that saw significant trading appetite was the Chinese Yuan futures, which recorded the highest monthly Average Open Interest of 436 contracts in January 2017.

Gaurang Desai, CEO of DGCX, commented on this month’s performance: “Last year, we witnessed sustained volatility, which emphasized to investors the value of transacting in a secure, transparent and regulated market place to hedge their risks and exposure against rapid price movements. Global markets are likely to continue experiencing sharp bouts of volatility throughout 2017 against a backdrop of major political developments and anticipated instability. We expect increased demand for derivative products for hedging and investment purposes and we are confident that DGCX will continue to play an increasingly important role for investors within the region.”

Keeping innovation at the core of the DGCX is key. We are optimistic that the current product pipeline for the year will enable the DGCX to further improve its growth and development milestones.”

About DGCX:Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives. 

DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  For more information: www.dgcx.ae

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The DGCX is proud to be a supporting member of the DMCC Energy Club

The DGCX is proud to be a supporting member of the DMCC Energy Club. The DGCX in conjunction with the DMCC would be delighted in welcoming you to the next event.

Kindly click here for more details

About DGCX:Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives. 

DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  For more information: www.dgcx.ae

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DGCX Rounds Off a Record-Breaking Year

DGCX Rounds Off a Record-Breaking Year

Dubai, UAE, January 03, 2017: Dubai Gold and Commodities Exchange (DGCX), the region’s largest and most diversified derivatives bourse, closed the year on a high note, recording growth of 36% over 2015. In 2016, the Exchange reached its highest annual volume traded with an aggregate of 19.7 Million contracts, valued at US $ 439.5 Billion.

2016 saw substantial global volatility triggered by a series of notable events; Brexit- leading to increased volumes in the Euro and British Pound, up 8% and 167% respectively, Indian currency demonetization along with the US election results and the recent US Fed rate hikes – all of which had an impact on markets and volumes, culminating in the DGCX marking its highest Open Interest (OI) of 665,058 valued at US $ 9.7 Billion. This increased trading activity in the face of volatile economic situations demonstrates the value of DGCX’s diverse product range and its use by regional and international traders to hedge and mitigate their risk exposure.

Trading an average of 76,835 contracts per day in 2016, DGCX also achieved its highest Average Daily Volumes (ADV) in its eleven years of operation.

DGCX’s currency segment was the outstanding performer in 2016, growing 34% from last year. The Indian Rupee products led the growth within currency segment, recording a substantial increase of 34% from last year. The Indian Rupee Options contract traded it’s highest volume with 334,823 contracts whilst the average daily OI touched 8,963 contracts. Other currency pairs witnessed significant year-to-date growth with G6 futures chronicling a rise of 57%.

The DGCX gold basket registered growth of 61% in 2016. DGCX’s gold products all performed strongly – Gold futures (up 29%) and Gold Quanto (up 158%). The growth in DGCX’s gold products is a strong indicator of how the precious metal retains and enhances its value in a period of high volatility. With the oil prices experiencing sharp fluctuations throughout the year, the volumes on DGCX’s energy products witnessed a significant jump of 206% from 2015.

Gaurang Desai, CEO of DGCX, commented: “2016 has been a remarkable year for DGCX which extended beyond the significant volume growth and multiple Open Interest records that we have been able to achieve. We have continued to deliver on our product strategy of launching innovative products such as Spot Gold and global Single Stock futures. The momentum has culminated in partnerships with large Chinese banks and exchanges. DGCX sealed a ground-breaking agreement with the Shanghai Gold Exchange to launch the Shanghai Gold contract in Dubai. This is the first time ever that an Exchange outside of China has been able to provide regional investors access to the world’s largest bullion market. Initiatives like these are truly unique for an Exchange and we will continue to push the envelope, creating long-term advantages for DGCX.”

Looking ahead to 2017

DGCX has created a robust product pipeline which includes initiatives focusing on the launch of Shanghai Gold Futures in Q1, regional currencies and the further expansion of its Energy product portfolio and Single Stock futures offering.

“Moving forward, we will continue to maintain our strategic focus on these core areas – introducing relevant yet unique products based on our market participants’ needs, growing our membership base and increasing our footprint,” added Gaurang.

Regulatory update

On December 16, 2016, the European Commission announced that the United Arab Emirates has an equivalent regulatory regime for central counterparties (CCPs) to the European Union (EU). This development will contribute to a more confident market and enhancing cross border activity, leading to greater consolidation of markets.

“The UAE regulatory regime being recognized by the European Commission as an equivalent for CCPs is a positive development as we begin the New Year. This highlights the relentless efforts of SCA in its bid to strengthen regulatory oversight in the UAE. This will no doubt promote further growth of the clearing and settlement business in the region,” concluded Gaurang.

About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives. 

DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  For more information: www.dgcx.ae

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