DGCX and CGSE Sign MoU to boost Precious Metals Market development

Dubai, UAE, 12 December 2016:  The Dubai Gold and Commodities Exchange (DGCX) today signed a Memorandum of Understanding (MoU) with the Chinese Gold and Silver Exchange Society (CGSE) in Hong Kong. As leading markets for precious metals trading, this collaboration will enable both DGCX and CGSE to deepen their penetration into emerging markets and further develop the precious metals markets in Asia and the MENA region.

Both CGSE and DGCX serve their domestic and regional client bases throughout Hong Kong, North East Asia, the GCC and the Indian Sub-continent, and this agreement recognizes the significant opportunities to meet the evolving needs of investors in China and the Indian Sub-continent – two of the world’s largest consumers of precious metals.

The MoU will enable CGSE and DGCX to cooperate within the precious metals markets, with a view to generating greater benefits for their market participants. The MoU will also pave the way for enhancing the positions of both Exchanges as benchmark reference pricing venues, and further establish them as prime centers  by connecting Asia and the Middle East.

Gautam Sashittal,  Chief Executive Officer, DMCC and Board Director of DGCX, said:

“At DMCC, the parent company of DGCX, we have successfully established ourselves as Dubai’s global gateway for trade with a strong focus on commodities, including precious metals. This partnership with CGSE marks a natural next step in achieving our underlying vision which is to connect markets and facilitate more global trade.  We look forward to collaborating with the CGSE to further support the economic development agenda of China and the UAE.”

Steven Chan Sheung Chi, President of the CGSE, said: “CGSE’s mission is not only to develop its role as China’s offshore hub for precious metals trading but also to strengthen cooperation with ASEAN countries. We have a broad ranging strategy in support of the Belt and Road Initiative that satisfies the demand in Dubai and that will benefit both parties. As Dubai is in the route of the Belt and Road, we shall work together to develop a proprietary product satisfying both parties’ need.”

Both the Exchanges will collaborate to identify the best models to increase trading activities between their markets, improve their respective markets’ liquidity and enhance the efficiency of delivery mechanisms.  DGCX and CGSE will also work together to educate their respective members on existing and new products and explore other areas of cooperation for the further development of the precious metal markets in Hong Kong and Dubai.

Gaurang Desai, Chief Executive Officer of the DGCX, concluded: “2016 has been a year of forging partnerships for us, especially among leading Chinese trading bodies. We are pleased to join forces with CGSE and work towards strengthening our links with the Chinese precious metals market. At DGCX, we adopt an ‘inside out’ and ‘outside in’ approach where we offer regional products to global investors and global products to regional investors. The MoU embodies this approach, as we grow our offerings and expand our reach to cater to different traders and investors across the globe.”

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 Caps 11th Anniversary with Record Volume Growth of 33%

Dubai, December 05, 2016: Dubai Gold & Commodities Exchange (DGCX) capped its 11th anniversary on November 21st, delivering a stellar year-to-date growth of 33%, trading over 13.2 million contracts. The Exchange also recorded a substantial growth of 34% in November 2016 from last year. Strong Open Interest (OI) and growth across its asset classes contributed to this month’s success with monthly overall open interest aggregating at 546,062 contracts.

On November 11th, the Exchange recorded the highest ever daily volume with 186,511 contracts, proving once again that DGCX is a safe harbour for global investors who are looking to hedge their risks and neutralize their exposure to volatile market movements resulting from the US Presidential Elections and India’s move to demonetize Rs 500 and Rs 1000 banknotes.

Indian Rupee products also scored multiple Open Interest (OI) records with Indian Rupee futures and Mini Indian Rupee recording the highest ever monthly Average Open Interest of 201,456 and 13,424 contracts respectively, whereas Indian Rupee Options recorded the 2nd highest monthly Average Open Interest of 15,607 contracts in November 2016.  The Indian Rupee Quanto futures also recorded the highest monthly Average Open Interest of 308,756 contracts.

Gaurang Desai CEO of DGCX said: “As DGCX celebrated its 11th anniversary this month, I am pleased to state that we see continued and consistent growth both in terms of Open Interest and daily volumes traded. In November, we achieved the highest OI and set a new daily volume trade record on November 11th with 186,511 contracts. This results from DGCX best meeting the needs of participants’ trading strategy and approach in the face of high market volatility.”

DGCX’s precious metals suite emerged as the best performer in November, with the segment’s overall volumes registering an incremental growth of XX.  Volumes in Gold futures, Dubai India Gold and Spot Gold were up by 126%, 88% and 5% respectively. The number of participates in Gold futures was up by 6%. Volumes in Silver futures and Copper futures grew by 81% and 370% respectively.

“Gold regained some ground on the back of the weaker dollar following the recent turmoil and uncertainty that embroiled the US elections and Indian Rupee demonetisation in November. This reflected the augmented interest and trading activity of DGCX’s gold suite which covers key bullion benchmarks across the world. Another key factor was the increasing interest in spread trade between Gold futures and Dubai India Gold futures. The recent listing of Shanghai Gold futures, the first Chinese bullion contract to be listed outside of China – clearly indicates that we are heading in the right direction, both organically and by innovatively expanding our precious metals segment,” Gaurang added.

Maintaining feedback with members and continuous evaluation of its existing products are central to DGCX’s strategy and it is along these lines that the Exchange recently relisted the Brent futures contract on 25th November 2016 due to growing demand from existing members. Given the huge potential for hydrocarbons in this region, DGCX plans to introduce more energy products to appeal to Exchange’s incumbent members as well as to new participants.

DGCX also participated in the 3rd annual FOW Dubai forum which focussed on increasing participation from both domestic and international players and highlighted how developments in market infrastructure and technology can encourage growth of the derivatives sector.

November results continue to support DGCX’s firm standing as the largest and the most diversified derivatives bourse in the Middle East. Responsible for creating a host of major milestones for the region, the Exchange began offering trading opportunities to financial communities and investment houses in both the Middle East and around the globe since its inception in 2005. DGCX set the bar high when it launched the first precious metals derivatives contract in Gold in the same year, followed by the first emerging markets currency derivatives contracts in 2007 with the launch of the Indian Rupee futures contract.

“DGCX’s global reach is expanding and this was recently evident with ICBC coming on board as our sixth Clearing and Settlement bank. I can proudly say that the growth we have experienced over the past 11 years has been fantastic and we are very much looking forward to the next stage of our development,” Gaurang concluded.

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 Welcomes ICBC as a Clearing and Settlement Bank

DGCX Welcomes ICBC as a Clearing and Settlement Bank

Dubai, November 15, 2016: Dubai Gold & Commodities Exchange (DGCX) today announced that Industrial and Commercial Bank of China Limited (ICBC), the world’s largest bank, has joined as a Settlement Bank for Dubai Commodities Clearing Corporation (DCCC) – a wholly owned subsidiary of DGCX that acts as a central counterparty for all trades executed on the Exchange. With the addition of ICBC, DCCC has expanded its network of Settlement and Clearing Banks to 6 global banks.

ICBC Abu Dhabi Branch entered into settlement banking agreement with DCCC in Dubai at a signing ceremony held in presence of senior officials from China Foreign Exchange Trade System (CFETS) and ICBC head office. This partnership will enable DCCC members to open their settlement bank accounts and process their settlement obligations for the RMB denominated trades executed on DGCX along with other clearing and post-trade services offered by the Bank.

ICBC, the largest bank in the world by assets, is listed on both the Hong Kong and Shanghai Stock Exchanges. The bank is well-known for its diversified business structure, strong innovation, and market competitiveness.

Gaurang Desai, CEO of DGCX, noted: “DGCX is pleased to welcome ICBC as a Settlement Banking partner. This development is not only a significant step forward in expanding settlement services for DGCX market participants but is particularly important in light of the recent agreement to list Shanghai Gold Futures on DGCX (the first yuan-denominated gold futures product to be offered outside of China) and already listed USD-CNH futures. This is just a beginning for our relationship with ICBC and we expect to cooperate in developing mutually products & services going forward”

Mr. Zhou Xiaodong, General Manager of ICBC Abu Dhabi Branch said: “We are extremely pleased to associate with DGCX as the Settlement Bank.  The association will facilitate adequate CNY liquidity for trading and investment between the local and Chinese economies. This will also lead the way for future product developments. As the largest bank in the world, we are proud to play an integral role in strengthening the development of UAE’s derivatives market.”

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 wins Exchange of the Year Award 2016

DGCX wins Exchange of the Year Award 2016

  • The Exchange was awarded the ‘Regional Exchange of the Year 2016’ by Global Investor on the 26th October 2016 and was commended for its efforts in providing innovative, safe and regulated products for traders in the region.
  • DGCX Indian Rupee Options contract was the best performing contract growing by 204% in Oct 2016 vs. Oct 2015
  • DGCX signs historic agreement with Shanghai Gold Exchange to become the first International Exchange to list Shanghai Gold Futures in Yuan as part of a larger UAE- China alliance during the Dubai week in China.

Dubai, November 01 2016: The Exchange continued its growth trend with an average open interest reaching a high of over 460,155 lots valuing an average of US$ 7.61 billion. Month of October witnessed steady volumes traded with an Average Daily Volume of 71,870 valuing an average of US$ 1.6 billion.

The Dubai Gold and Commodities Exchange (DGCX) saw its Indian Rupee product suite record new highs, reaching a cumulative Average Daily Volume (ADV) growth of 36.56% year to date, valued at 1.48 Bln USD.  Global volatility having its impact on futures trading is clearly reflective with, the Indian Rupee Options, Quanto and Rupee-USD Futures contracts becoming increasingly popular choices for regional investors and traders with over 14.9 million contracts traded to date.

Year to date, the Indian Rupee Options contract Average Daily Volumes grew by an impressive  219%, The Rupee Quanto contract increased year-on-year volumes by 299%, from 1.06 million to 4.23 million contracts traded, while the Rupee Options volumes increased by 156.85% year-on-year, from 97,224 to 249,717 contracts. The Indian Rupee Quanto contract was recently awarded the Most Innovative Contract of the year in Singapore at the Asia 2016 FIA Awards.

Beating their own previous records, the Indian Rupee Options contract and the Indian Rupee Quanto Futures contract both peaked with the highest monthly Average Open Interest (AOI) of 16,196 contracts and 238,783 contracts respectively. The Indian Rupee Futures contracts recorded the 2nd highest monthly AOI of 192,388 contracts.

FX contracts were clearly the standout performers. The GBP-US Dollars Futures contract recorded a 126% ADV growth year-to-date whilst, the Chinese Yuan Futures contracts recorded its 2nd highest monthly Average Open Interest In October.

These trends are indicative of investor demand for opportunities in emerging markets and regulated platforms that allow for hedging their exposure at a time when markets are impacted by global events such as Brexit and US presidential elections.

Global market volatility dominated the recent 32nd Annual FIA (Futures Industry Association) Expo in Chicago, where DGCX participated in a eight member exchange panel focused on Asian exchanges which focused on growing interest from the Western trading community in emerging market opportunities.

Gaurang Desai, Chief Executive Officer of the DGCX, commented on the performance of the Exchange: “After the recent RBI rate cut in India, the continued Brexit discussions and the impending US presidential elections, our members, both old and new, are seeing the DGCX’s unique value proposition for their hedging and trading needs. Volatility can cause short sharp shocks to global markets – we have seen a trend among our members to move towards  regulated and protected robust exchange platforms. We at the DGCX make it a priority to ensure that our clients’ capital is protected in uncertain times, through our robust risk systems and ability to offer real time mark to market valuations.”

As part of the UAE Governments initiative ‘Dubai Week In China’, DGCX also signed a strategic agreement with the Shanghai Gold Exchange. By referencing the bullion benchmark prices on its trading platform, DGCX has become the first-ever International Exchange to list and provide vital access to Shanghai Gold Futures quoted in Yuan. This is a starter milestone marking the way for further internationalization of the global bullion derivatives markets.

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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Dubai Gold and Commodities Exchange Opens Vital Trading Link to Chinese Bullion Market

Dubai Gold and Commodities Exchange Opens Vital Trading Link to Chinese Bullion Market

  • Shanghai Gold Futures to list on DGCX
  • First Chinese bullion contract outside of China – futures priced in yuan
  • Provide a key benchmark for gold prices to trading institutions

Dubai, UAE; October 29, 2016: The Dubai Gold and Commodities Exchange (DGCX) today announced it has obtained a license from the Shanghai Gold Exchange (SGE) to list Shanghai Gold Futures on its exchange. It will be the first yuan-denominated gold future product to be offered outside of China and it will use the Shanghai Gold Benchmark Price as its pricing mechanism.

The aim of the listing is to create further economic development and cooperation between China and Dubai through the precious metals trade. The gold futures product will offer global participants access to China and with that a deeper pool of liquidity as well as an enhanced gold pricing mechanism. Currently, DGCX bullion products offering include Spot and Futures Gold contact and an Indian Gold Quanto Futures.

DGCX and the SGE signed a licensing agreement, at a ceremony held at Dubai Week in China, Shanghai, in the presence of His Excellency Abdulla Al Saleh, Under Secretary of the UAE Ministry of Economy for Foreign Trade and Industry Affairs; Consul General His Excellency Ibrahim Al Mansouri, Consulate General of The United Arab Emirates to Shanghai; Jiao Jinpu, Chairman, Shanghai Gold Exchange; Gautam Sashittal, Chief Executive Officer, DMCC; and Gaurang Desai, CEO of DGCX.

At the signing ceremony for the licensing agreement, Gautam Sashittal, Chief Executive Officer, DMCC and Board Director of DGCX, said: “It is an honour to be chosen as the first international exchange to list the Shanghai Gold Futures contract. We are a gateway to the Middle East, Africa and Europe where a significant portion of gold traders, miners, jewelers and financiers reside. This contract will have far-reaching appeal to those wanting access to a product with deeper pools of liquidity and a pricing mechanism that is fair and transparent. We have a world-class exchange and clearing house in place to support the yuan. This agreement adds significant value to our market participants and platform for deepening our economic development with Shanghai.”

Gaurang Desai, CEO, DGCX, added: “We have been greatly involved with key players in the Chinese derivatives marketplace over the past few years, and are looking to strengthen these links even more. Associating ourselves with such  dynamic markets takes us a step further along the path of substantial growth and expansion, both regionally and internationally.”

Mr. Jiao Jinpu, Chairman of SGE commented: “Shanghai Gold” has raised significant international attention. Dubai, as “City of Gold”, is not only one of the most important gold trading center in the world, but also an important node in OBOR initiative. The collaboration between Shanghai Gold Exchange and Dubai Gold and Commodities Exchange (DGCX) is ‘world first’ usage of “Shanghai Gold Benchmark Price” in the international financial markets. DGCX Shanghai Gold Futures Contract, which settles on the “Shanghai Gold Benchmark Price”, is the foremost RMB denominated gold futures contract launched offshore . The cooperation between the two exchanges will contribute to the exchange of resources between the two financial markets, enhance the influence of the two places in the global gold market, and jointly build the bond connecting the East and West gold markets”.

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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