Posts Tagged ‘2017’

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

Continue Reading

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

Continue Reading

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

Continue Reading

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

Continue Reading

DGCX, DMCC signs MoU with RAKBANK To Develop Precious Metals Products to Enhance Retail Appeal

Dubai, UAE, April 8th 2017: The Dubai Gold and Commodities Exchange (DGCX), the Dubai Multi Commodities Centre (DMCC) and RAKBANK signed a Memorandum of Understanding (MoU) today for development of bullion products. One product that is in immediate consideration is a Retail Spot Gold contract that could be specifically targeted for retail investors and traders. All products will be submitted to the relevant regulatory authorities for approval prior to launch.

A potential Retail Spot Gold contract could have a smaller denomination size in comparison to the existing DGCX Spot Gold contract which requires physical delivery of one kilogram gold bars. Launched in 2016, the DGCX Spot Gold contract has attracted several institutional participants and gold players from overseas as well as from the region due to the availability of a transparent and locally relevant price discovery mechanism. The potential Retail Spot Gold contract would be fully backed by physical gold, and will be held in a electronic form with the capability of physical redemption. This will cast a wider net in terms of a target investor audience and is expected to appeal more to retailers and smaller, more risk-averse investors and traders based in the region who have been looking at gold products offered through a fully lisenced exchange, such as the DGCX.

Gaurang Desai, CEO of the DGCX, commented on this MoU: “We are delighted to announce this strategic partnership with RAKBANK in association with DMCC. Product innovation is at the core of our business strategy as an Exchange. We are constantly exploring new product lines with the needs of an ever-changing and growing customer base with the objective of catering to both institutional and retail participants. We strongly believe that by working together with RAKBANK and DMCC, we can leverage each other’s strengths to create synergies and develop a safe and efficient platform for retail gold trade and investment in Dubai, ultimately contributing to the development of the region’s bullion market.”

Peter England, RAKBANK CEO, said: “We recognize the strong appeal of owning gold across the UAE with many people having a strong belief in the great security and safe haven store of value that physical gold brings. RAKBANK’s tie up with the DMCC and DGCX will  enable the development of a platform that allows customers, large and small, from across the region to acquire gold, at competitive prices, with a click of a button through an integrated Digital Banking platform. By providing customers with this opportunity, we will help them to diversify their currency and asset holdings in a simple and cost effective manner, and enable them to manage risks in a secure, reliable and well regulated environment.”

Commenting on the development, Gautam Sashittal, CEO of DMCC, said: “Our partnership with RAKBANK marks an important milestone in our journey to create a fully integrated global bullion market in the UAE. This is the beginning of an exciting journey that will offer for the first time, retail bullion investment products on exchange. This, together with our listed existing  futures and spot products create a truly unique and appealing portfolio to the international trading and investor community, both wholesale and retail.”

Since its inception in 2005, DGCX has been supporting the hedging needs of gold traders based in Dubai through numerous Gold futures contracts. DGCX’s product portfolio covers a diverse range of energy, precious metals, base metals and currencies.

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

For media enquiries, please contact:

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

Continue Reading