ADX and DGCX Agree to Collaborate on a Unified Clearing House in the UAE

ADX and DGCX Agree to Collaborate on a Unified Clearing House in the UAE

Dubai, UAE, July 9 2017: The Abu Dhabi Securities Exchange (ADX), a leading securities exchange in the region, signed a Memorandum of Understanding (MoU) with Dubai Gold and Commodities Exchange (DGCX), the region’s largest and most diversified derivatives bourse, and its parent company, DMCC (Dubai Multi Commodities Centre) to create the basis for collaboration on a unified Clearing House (CCP) in the UAE.

The MoU was signed by Rashed Al Blooshi, Chief Executive, ADX; Gautam Sashittal, Chief Executive Officer, DMCC and Member of the DGCX Board of Directors; and Gaurang Desai, Chief Executive Officer, DGCX and Dubai Commodities Clearing Corporation (DCCC).

Commenting on the initiative, Ahmed Bin Sulayem, Executive Chairman, DMCC, said: “This is a unique collaboration which we expect will lead to the creation of a national clearing house with the size, scale and capability to clear all asset classes.”

Additionally, this collaboration aims to promote a stronger cooperation across a number of areas, including clearing and settlement of equities, commodities, currencies, OTC instruments and derivatives products, as well as support with the listing of respective products and securities.

Rashed Al Blooshi, Chief Executive of ADX, said: “This memorandum will provide a framework for understanding and collaboration between ADX and DGCX. As a home-grown entity just like the DGCX and DMCC, we are deeply committed to accelerating the growth and development of the UAE financial markets and raising the bar in terms of trading and clearing standards. We see this as the beginning of a long and prosperous relationship that will open up new opportunities to mutually benefit both exchanges.”

“Moreover, the signing of this MoU comes in accordance with ADX strategic goals to increase market cap and product range as well as attract and activate a wider range of investors. In accordance with Abu Dhabi Plan, ADX is committed to creating a business environment that is both competitive and flexible in the framework of enhancing the competitive environment for doing business and attracting investment into the Emirate,” added Al Blooshi.

Gaurang Desai, Chief Executive Officer of DGCX and Dubai Commodities Clearing Corporation (DCCC), said: “We are delighted to partner with ADX. We believe that this will build a strong market connect within the UAE, especially in the areas of clearing and settlement. As the largest and the only multi-asset CCP in the region that is globally recognized, DGCX and its wholly owned CCP, DCCC, has a pioneering role to play in ensuring that it extends itself as a strong clearing base for partner exchanges, not only in the UAE, but also in the wider region.”

DCCC, a wholly owned subsidiary of DGCX, was recently recognized by ESMA as a Third-Country CCP. Having handled DGCX’s clearing without a single default since inception, DCCC has earned itself the reputation of being a credible and reliable partner for clearers, clients and market participants of the DGCX. DCCC is the only CCP in the Middle-East that offers clearing services across multiple asset classes: FX, Precious Metals, Energy and Equity Derivatives. DCCC offers Clearing Members the option of settlement in multiple currencies along with accepting a wide range of collaterals against margins.

ENDS

About ADX: Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management. The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions.

ADX is a market for trading securities; including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA).

At the end of 2016, ADX had 71 listed securities with a market capitalization of AED 475 billion (USD 129 billion). Those securities include 66 public joint stock companies, 2 private joint stock companies, 1 Exchange Traded Fund (ETF), 1 Abu Dhabi Government bond, and 1 convertible bond. ADX listed companies are allocated in nine sectors; Banking, Real Estate, Consumer Staples, Investment and Financial Services, Industrial, Telecommunication, Services, Energy, and the Insurance sector.

In 2014, ADX was upgraded to ‘Emerging Market’ status by both MSCI index (Morgan Stanley Capital International) and S&P Dow Jones, thus greatly increasing the likelihood of inward global investment flows. ADX was already classified as an Emerging Market by FTSE in 2009 and in 2011 by S&P and Russell Investments.

About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 200 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae

DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognised as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 80 clearers from across the globe. For more information: www.dccc.co.ae

About DMCC: DMCC is the authority on trade, enterprise and commodities in Dubai – home to the world’s leading businesses of today, and tomorrow. The most successful markets create conditions that enable producers, traders and consumers to thrive. DMCC is a Dubai Government Authority committed to developing these ideal conditions and has a strong track record in commodity trade facilitation where we encourage and support business through the platforms we provide. These include our Free Zone, commodity exchanges, legal and regulatory frameworks and our real estate offering.

DMCC is developing the ‘Burj2020 District’ as part of our DMCC Free Zone expansion strategy to provide leading businesses with a commercial property offering unique to the Dubai marketplace. Indispensable to the economic growth of the nation, we – together with our members – deliver strong performance today, and sustainable growth tomorrow.

DMCC. Made for Trade. www.dmcc.ae

Further Information:

Meng Chan Shu

Director of Business Development and Sales

Dubai Gold and Commodities Exchange

Tel: +9714 361 1660

Email: meng.shu@dgcx.ae

OR Dhanya Issac/Lara Batato

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: dissac@webershandwick.com/ lbatato@webershandwick.com

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DGCX Sees Growth in Gold and Currencies Amidst Increased Geopolitical Risks and Economic Uncertainty

DGCX Sees Growth in Gold and Currencies Amidst Increased Geopolitical Risks and Economic Uncertainty

DGCX June Volumes Press Release  

Dubai, July, 02 2017: Dubai Gold and Commodities Exchange (DGCX), the region’s largest and most diversified derivatives bourse, witnessed a surge in Gold and currencies trading in June, which can, in part be attributed to the recent listing of additional ‘Calendar spreads’ on the Exchange’s Gold Futures and G6 Currency contracts.

‘Calendar spreads’ also known as ‘Futures or Intermonth Calendar Spreads’ are a set of futures trading strategies that utilizes future contracts of different expiration months on the same underlying asset. Calendar Spreads are designed for traders to benefit from the difference in movement between near term futures contracts and longer term futures contracts.

In the first half of the year, DGCX’s Precious Metals segment demonstrated consistently strong performance amidst the rising uncertainty surrounding economic policies and geopolitical risks across the globe. Both Shanghai Gold futures and Spot Gold set record volumes in June, trading their highest monthly volumes and also recorded their highest Average Open Interest (AOI) too. The Loco-Dubai Spot Gold contract achieved its highest monthly volume of 4,702 contracts with a traded value of USD 189.62 million, while it was also a record month for deliveries with over 335kg being exchanged. The contract also saw a significant jump of 1766% over the same period last year, trading a total of 10,172 contracts to-date in 2017. The Yuan-denominated Shanghai Gold Futures traded its highest monthly volume of 3,433 contracts with a value of USD 967.43 million.

G6 currencies continued their upward trajectory in June 2017 vis-à-vis the same period last year with volumes up in Japanese Yen (313%), Euro (56%), Canadian Dollar (815%) and Swiss Franc (692%); aided by the aforementioned Calendar Spreads.

Gaurang Desai, CEO of DGCX, commented on the Exchange’s H1 performance: “DGCX’s robust performance in the first half of the year was influenced by two key factors; Changes being rolled out by President Trump’s policy initiatives, Elections in the UK with the start of Brexit negotiations and other global geopolitical developments, which led investors to use the DGCX to effectively manage their risk. However, the second catalyst for DGCX’s volume growth is a combination of key initiatives rolled out during the first half of the year, including the successful launch of a Chinese gold derivative product, the Exchange’s enhanced risk management framework, the growing number of strategic partnerships (involving local banks and other international exchanges), and the recent listing of additional calendar spreads on DGCX’s key products.

These initiatives have proved valuable adding more depth and confidence to the marketplace. As we move into the second half of the year, we will continue to focus our efforts on tapping similar opportunities that are essential for the further growth of DGCX as well as developing innovative products that are pertinent to our market participants.”

ENDS

About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 200 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognised as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 80 clearers from across the globe.

For more information: www.dccc.co.ae

Further Information:

Meng Chan Shu

Director of Business Development and Sales

Dubai Gold and Commodities Exchange

Tel: +9714 361 1660

Email: meng.shu@dgcx.ae

OR

Dhanya Issac/Lara Batato

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: dissac@webershandwick.com/ lbatato@webershandwick.com

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Emerging Markets Volatility boosts DGCX Currency Volumes

Emerging Markets Volatility boosts DGCX Currency Volumes


Dubai, 01 June 2017: As volatility slowly crept back into Emerging Markets, the Dubai Gold & Commodities Exchange (DGCX) witnessed a spike in FX products’ trading during the month of May. DGCX, which is the region’s largest and most diversified exchange currently lists thirteen currency pairs. The increase in volatility helped the Exchange record its highest traded volume of the year with over 1.43 million lots traded in May.

Trading volumes in DGCX’s Non-INRUSD FX segment grew 53% from the same period last year. Amongst the G6 currency pairs, Japanese Yen saw a seven-fold increase in volume. While the Euro, Canadian Dollar and Australian Dollar futures saw significant year-on-year increases of 102%, 94%, and 64% respectively which marked the latter two pairs best performance to-date.

Among the precious metals products, the recently listed Shanghai Gold futures traded an impressive volume of 2,889 contracts valued at CNH 805 million. The Yuan (CNH) denominated gold product has had a positive knock-on effect on DGCX’s other gold products including the Loco Dubai Spot Gold which continued to shine recording strong growth of 1131% from last year. Trading in Silver futures also saw volume growth of 101% from April 2017. DGCX has also increased its focus on expanding its educational initiatives and enhancing its risk management systems.

The Exchange has been actively involved in educating the trading community, ranging from avid traders to students, through its Trading Campus – launched in collaboration with the Envision Trading Centre. Trading Campus and the DGCX signed a MoU with Amity University Dubai to deliver a specialised course on financial markets with exposure to real-time markets by using live trading simulators during the month of May.

Gaurang Desai, CEO of the DGCX, commented: “We are focused on creating long-term value for our stakeholders and market participants. Whether it is building liquidity in products, raising awareness or imparting the right knowledge; we want to make sure traders and investors are prepared for the challenges of fast moving markets.

The economically turbulent landscape of 2017 has highlighted the need to make ‘informed choices’ in order to protect oneself from market adversities. ‘Informed choices’ can only be made by possessing the appropriate knowledge and skills with regard to investing and trading whilst trying to achieving the balance between risk and reward. This is why we are adding increased emphasis on our educational agenda, and hope to educate as many traders and investors in the UAE and the wider region to benefit from ‘informed choices’.” The Exchange also recently launched a highly efficient and improved Risk Management System called ActiveRisk. The state-of-the-art risk management system will identify the aggregate counterparty credit risk during default scenarios. It has been implemented by the Dubai Commodities Clearing Corporation (DCCC), DGCX’s Central Counter Party (CCP), to enhance regulatory compliance with the IOSCO-PFMI and ESMA standards.

“We are constantly improving our processes, systems and compliance standards to match them with international benchmarks. As the leading exchange in the region, we are committed to provide our community with robust risk management tools and cutting-edge knowledge to trade and transact with confidence,” concluded Gaurang.

ENDS

About DGCX: Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 200 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors.  DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities.

For more information: www.dgcx.ae

DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognised as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 80 clearers from across the globe.

For more information: www.dccc.co.ae

Further Information:
Meng Chan Shu
Director of Business Development and Sales
Dubai Gold and Commodities Exchange
Tel: +9714 361 1660
Email: meng.shu@dgcx.ae

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DCCC launches ‘ActiveRisk’ Risk Management System

DCCC launches ‘ActiveRisk’ Risk Management System


Dubai, 08 May 2017: The Dubai Commodities Clearing Corporation (DCCC), the leading Central Counter Party (CCP) in the region and a wholly owned subsidiary of the Dubai Gold & Commodities Exchange (DGCX), has announced the launch of a state-of-the-art Risk Management System (RMS) called ActiveRisk.

ActiveRisk, developed by Chella Software (CSPL), has been deployed by DCCC with the primary objective of enhancing its regulatory compliance in line with the PFMI (Principles for Financial Markets Infrastructure) standards and also ESMA (European Securities and Markets Authority) technical standards under European Market Infrastructure Regulation (EMIR). The key feature of ActiveRisk is to identify the aggregate counterparty credit risk during default scenarios. While also verifying adequacy of liquidity resources in a market stress condition with the identification of material impacts of tail events on clearing member and customer exposure.

With the enhanced system in place, DCCC will conduct Stress Tests on a daily basis to effectively measure its resilience against the default of its top Clearing Members and its corresponding cascading impact, while Reverse Stress Testing will challenge the resilience of the DCCC liquid resources under stressful scenarios. This will help DCCC in not just determining the appropriate margin requirements but also better gauge short-term liquidity challenges amidst adverse price movements. These tests are in accordance with international and federal CCP regulatory requirements and global best practices.

DCCC, recently recognized by ESMA as a Third-Country CCP, has not had a single default since its inception and has earned itself the reputation of being a credible and reliable partner for clearers, clients and market participants of the DGCX. With the deployment of ActiveRisk, DCCC will further strengthen its risk management framework.

Gaurang Desai, CEO of DGCX, commented on launching the new risk management system: “At DGCX we firmly believe in stronger risk management norms for the safety of our markets. Whilst continuing to enhance efficiencies in our systems and processes by deploying the latest technology so that our members and their clients can trade with confidence. As we significantly step-up our operational standards to adhere to IOSCO and other regulatory requirements, we are also aware that advancement in risk management is the need of the hour. Implementation of ActiveRisk is a vital step towards elevating DCCC’s risk management practices.”

Kathir Kamanathan, Founder and CEO of Chella Software Private Limited, said: “We are very pleased to go live with our ActiveRisk system for the DCCC, the largest CCP operator in the region. We design risk systems that not only meet the best compliance standards but also deliver a distinct competitive advantage to both Exchanges and CCPs. We are honored to be chosen by DGCX Group to be their partner in this endeavor.”

The DCCC is one of the largest and most diversified CCP operators in the Middle East, offering clearing services across multiple asset classes. DCCC also offers Clearing Members the option of settlement in multiple currencies along with accepting a wide range of collaterals against margins. Following the third-country CCP recognition from ESMA, DCCC is now able to provide clearing services to European financial institutions. The DCCC is regulated by the Securities & Commodities Authority of the UAE (SCA).

ENDS

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 219 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. For more information: www.dgcx.ae and www.dccc.co.ae

Further Information:
Meng Chan Shu
Director of Business Development and Sales
Dubai Gold and Commodities Exchange
Tel: +9714 361 1660 Email: meng.shu@dgcx.ae

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DGCX Launches Shanghai Gold Futures Boosting Precious Metals Trading in April

DGCX Launches Shanghai Gold Futures Boosting Precious Metals Trading in April

Dubai, 01 May 2017: The Dubai Gold and Commodities Exchange (DGCX), the region’s largest and most diversified derivatives exchange, witnessed an eventful month of trading across its precious metals, base metals and currency segments in April. The recently listed DGCX Shanghai Gold Futures Contract (DSGC) has had a positive knock-on effect on the trading activity of the Exchange’s other gold products. The DSGC, which uniquely allows access to the Chinese Gold market, traded a total of 2,946 contracts since its listing on March 10th. DGCX’s Spot Gold contract saw impressive six-fold growth year-on-year, while also recording a 74% increase in deliveries through the DMCC Tradeflow platform.

There’s also been a growing optimism for gold, especially on the back of Brexit and French election uncertainty. DGCX’s recent MoU with RAKBANK to develop gold products for the retail segment is also a clear sign of this precious metal’s rising popularity in a period of political uncertainty among both institutional and retail investors alike.

Gaurang Desai, CEO of the DGCX, commented on the Exchange’s trading activity: “We are pleased to see our product suite, volumes and member community grow consistently. This helps us to create a vibrant, exciting and well regulated marketplace for all market participants across asset classes.”

“Our Indian Rupee product range is maturing as contracts with long-dated expiries began to trade more regularly. This signifies that traders are beginning to look at the forward implications of the trading oscilations in the Indian Rupee. This contributes to achieving greater trading depth on the Indian Rupee curve,” added Gaurang.

Volumes in G6 currencies rode high on the back of volatility caused by French elections and the recently announced plans for ambitious tax cuts by the Trump administration in the USA. Volumes in Yen and Canadian Dollar contracts grew by 65% and 226% respectively, with both the contracts recording the highest ever OI (Open Interest). Volumes in Pound Sterling also grew moving up by 81% year to date.

Another notable performer was Copper Futures which saw a substantial jump of 461% from March, recording it’s highest volume over the last two years, as physical traders look for safer and more transparent venues to trade.

ENDS

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 219 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. For more information: www.dgcx.ae and www.dccc.co.ae

Further Information:

Meng Chan Shu

Director of Business Development and Sales

Dubai Gold and Commodities Exchange

Tel: +9714 361 1660 Email: meng.shu@dgcx.ae

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