DGCX and DCCC Reinforces Its MENA Presence with Regulatory Recognition from ADGM

DGCX and DCCC Reinforces Its MENA Presence with Regulatory Recognition from ADGM

The FSRA Recognition allows ADGM registered entities to access DGCX and DCCC platforms for trading and clearing activities

Dubai, July 22, 2017: The Dubai Gold and Commodities Exchange (DGCX) and its CCP subsidiary, Dubai Commodities Clearing Corporation (DCCC) has been recognised as a remote Exchange and Clearing House by the Financial Services Regulatory Authority (FSRA), the regulatory authority for the Abu Dhabi Global Market (ADGM), enabling ADGM companies to access its trading and clearing platforms.

The recognition status takes effect immediately and enables financial institutions domiciled in the ADGM and licensed by the FSRA to become members of the DGCX, the region’s largest and most diversified derivatives exchange and clear through its globally recognized Clearing House, DCCC.

At present, Aarna Capital Limited, an ADGM domiciled brokerage house, is being on-boarded as the first member of DGCX and DCCC under the new status.

Gaurang Desai, Chief Executive Officer of the DGCX, commenting on the certification, said: “We are delighted about being the first Exchange and Clearing House to be granted remote recognition status by FSRA. The FSRA accreditation will enable us to offer the full range of our listed derivatives products in all asset classes to the burgeoning ADGM community. This recognition will support us in expanding our membership base and further bolsters our liquidity pool while bringing in more diverse participants to the DGCX marketplace. We also welcome Aarna Capital Limited to the DGCX family and look forward to extending our network of regional and global partnerships through institutions based within the ADGM.”

Richard Teng, Chief Executive Officer of the Financial Services Regulatory Authority of ADGM, said: “We congratulate DGCX as the first remote exchange and clearing house to join the ADGM family. This exciting development provides ADGM-licensed entities the platform to transact and clear commodity derivatives via DGCX’s regulated and transparent electronic marketplace, and gain access to a broader product base within ADGM.  We look forward to DGCX adding vibrancy to the capital markets in Abu Dhabi and the region.  As an international financial centre, ADGM will continue to actively advocate and maintain a well-regulated, dynamic and conductive environment that attracts and supports both local and global institutions in their growth aspirations and business needs.”

Financial institutions domiciled in ADGM and licensed by FSRA interested in applying for a DGCX membership must be licensed to carry out Futures and Options activities by the FSRA.

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 recognized 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 ABU DHABI GLOBAL MARKET (ADGM) Abu Dhabi Global Market (“ADGM”), an international financial centre in the capital of the UAE, opened for business on 21st October 2015.   In line with the Abu Dhabi’s Economic Vision, ADGM is a natural extension of Abu Dhabi’s role as a reliable and responsible member of the global financial community. Strategically situated in Abu Dhabi, home to one of the world’s largest sovereign wealth funds, ADGM plays a pivotal role in positioning Abu Dhabi as a global centre for business and finance that connects the growing economies of the Middle East, Africa and South Asia.

ADGM’s three independent authorities, the Registration Authority, the Financial Services Regulatory Authority and ADGM Courts, enable companies to conduct their business efficiently within an international regulatory framework that has an independent judicial system and legislative infrastructure based on the Common Law.   Established by a UAE Federal Decree as a broad based financial centre, ADGM’s foundation is anchored on three of Abu Dhabi’s strategic strengths – private banking, wealth management and asset management and will continually expand its financial services in response to the needs of its businesses and marketplace.  For more details of ADGM, please visit www.adgm.com or follow us on Twitter: @adglobalmarket, @FinTechAD, #FinTechAD, and LinkedIn: ADGM

 

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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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 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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Dubai Commodities Clearing Corporation (DCCC) Recognised by ESMA as a Third-Country CCP

Dubai Commodities Clearing Corporation (DCCC) Recognised by ESMA as a Third-Country CCP


Dubai, 13 April 2017: The Dubai Commodities Clearing Corporation (DCCC), a leading Central Counter Party (CCP) in the region and a wholly owned subsidiary of the Dubai Gold & Commodities Exchange (DGCX), announced today its recognition as a third-country CCP (TC-CCP) by the European Securities and Markets Authority (ESMA). This recognition was granted to the DCCC on March 30 under the European Market Infrastructure Regulation (EMIR), adopted in July 2012. Under EMIR requirements, TC-CCPs need to be recognised by ESMA in order to operate in the European Union. This decision will open access to all European banks to clear DGCX trades without incurring any additional capital requirement as imposed by EU Regulations on their exposure to DCCC.

DCCC is one of the largest and most diversified CCP operators in the Middle East and has handled DGCX’s clearing without a single default since inception. 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. Following the third-country CCP recognition from ESMA, DCCC will now be able to provide clearing services to European financial institutions.

DCCC collaborated with the UAE’s National Competitive Authority (NCA) – the Securities and Commodities Authority (SCA) during the recognition process and implemented a number of critical improvements to the regulatory oversight and corporate governance standards.

Gaurang Desai, CEO of DGCX, commented on this momentous achievement:

“The TC-CCP recognition from the European Securities and Markets Authority marks a major milestone in the history of DCCC’s operations. This truly demonstrates the continued efforts of the DCCC, DGCX and the United Arab Emirates to improve the quality of regulatory oversight and align it with international standards. We are excited about the DCCC now being able to work with European Clearing Institutions, and the many opportunities it will present for clearing businesses in the UAE and wider region. We are immensely grateful for the unflinching support received from the SCA throughout the TC-CCP process.”

As a third-country CCP, DCCC is now considered as a Qualifying Central Counterparty (QCCP) as per European banking regulations. The banking regulations imposed significantly higher capital charges on European banks with exposure to non-QCCPs. European clearing participants will now have lesser capital requirements for trades cleared and settled through DCCC.

Commenting on this development, H.E. Dr. Obaid Saif Al-Zaabi, Acting Chief Executive Officer of the SCA noted: “SCA is proud that the DCCC has achieved the ESMA/EMIR equivalence. This is of great value to not only SCA, but also to all of our stakeholders and bodes well for the UAE’s leading position as a regional hub for central clearing.”

Mr. Aazar Ali Khwaja, Senior Executive Vice President, Head of Global Markets and Treasury at Emirates NBD commented: “Emirates NBD congratulates DCCC on this significant achievement, which will lay the foundation for expanding its commodities clearing services business across the European Union. As the only UAE National partner Clearing Bank associated with DCCC, Emirates NBD is proud to be a part of this achievement and is committed to supporting DCCC in its future ventures.”

For further details, please refer to ESMA’s website, as follows.

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 Opens-Up Access to the Chinese Bullion Market with the Historic Launch of Shanghai Gold Futures

DGCX Opens-Up Access to the Chinese Bullion Market with the Historic Launch of Shanghai Gold Futures


Dubai, UAE, 09 April 2017: The Dubai Gold and Commodities Exchange (DGCX) today announced the historic launch of DGCX Shanghai Gold Futures (DSGC), following the signing of a landmark deal with the Shanghai Gold Exchange (SGE) last year. The yuan-denominated contract, DSGC, marks the first-ever usage of the Shanghai Gold Benchmark Price in international markets. The launch of the DSGC was officially announced at the Dubai Precious Metals Conference (DPMC) taking place today.

The introduction of DSGC opens up a vital trading link by providing investors across the globe access to the largest bullion market, which is connected to over 10 million institutional customers, 8.3 million individual customers and 55 certified gold vaults.

Ahmed Bin Sulayem, Chairman of the DGCX and Executive Chairman of DMCC, commented: “The listing of the Shanghai Gold Futures contract on DGCX is a landmark development. With the launch of this contract, all key bullion price indicators are accessible on a single platform, with significant margin efficiencies. We are delighted to further this partnership with the Shanghai Gold Exchange, today the largest bullion market in the world.”

Speaking on the launch of DSGC ahead of the Dubai Precious Metals Conference, Gaurang Desai, CEO of DGCX, said: “This is a significant milestone for DGCX and we are truly delighted to be the first and only Exchange in the world to introduce a Chinese gold-backed derivative product in international markets. By trading DSGC, members and participants of the DGCX can access the Chinese bullion market which until now was difficult to access for foreign participants. The product will also open doors for other traders who don’t currently trade on DGCX but are keen to access the Chinese bullion market.”

DSGC will have a far-reaching appeal to those seeking access to a product with deeper liquidity pools and a fair and transparent pricing mechanism. The DSGC contract is quoted and traded in Yuan, with settlement prices derived from the Shanghai Gold Exchange (licensee). The contract is size 1,000 Grams (1KG) with the contract price quoted in CNH per gram.

The listing of Shanghai Gold Futures on DGCX which has a wide international footprint and well-established local clearing capabilities for precious metals in the Middle East, bodes well for the UAE, particularly Dubai, which is already a strategic gold trading hub and a key point in the ‘Belt and Road’ initiative.

DGCX has institutionalized robust market-making mechanism to ensure liquidity and competitive price spreads throughout the trading day. Amongst others, Agricultural Bank of China (DIFC Branch) has been officially appointed as the market maker for the contract to support momentum and maintain liquidity in the marketplace.

Alfred Yeung, Chairman of GlorySky Group, also commented on the launch of Shanghai Gold Futures on DGCX:  “The DGCX Shanghai Gold Futures is an innovative gold product resulting from DGCX‘s fruitful collaboration with the Shanghai Gold Exchange. This product is of immense significance to our customer base across Asia Pacific, who have been seeking access to the Chinese Bullion market for a while now. Also, having a large Chinese bank like the Agricultural Bank of China as an appointed market maker gives us the assurance that liquidity is guaranteed at all times. I’m confident that this unique gold product would greatly appeal to our clients who’d like to trade and take positions to hedge against fluctuations in gold prices.”

DGCX’s bullion product suite currently includes a Spot Gold Contract, Futures contracts in both Gold and Silver as well as Indian Quanto contracts in Gold and Silver. The addition of the DSGC contract will greatly enhance DGCX’s precious metals offering and more specifically complement the Exchange’s gold products. It also raises DGCX’s global appeal – making it the only Exchange in the world to offer a range of gold products that are linked to all the major global trading hubs including China, India, Dubai and the US.

“Introducing innovative products such as the DSGC to the market highlights the valuable role that DGCX plays in developing the regional derivatives marketplace. And now with the launch of DSGC, we are further deepening our presence and commitment in the global bullion market. We are confident that DSGC will attract more traders worldwide to participate on the DGCX platform,” concluded Gaurang.

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

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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