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DGCX Records Best April Since Inception with Uptick in Indian Rupee and G6 Currencies Trading

DGCX Records Best April Since Inception with Uptick in Indian Rupee and G6 Currencies Trading

The Dubai Gold & Commodities Exchange (DGCX) achieved its best April performance since inception, with overall volumes reaching 1,696,877 contracts, valued at USD 32.29 billion. Last month’s record-breaking performance was largely driven by an uptick in Indian Rupee (INR) trading fuelled by India’s upcoming elections, as well as ongoing geopolitical tensions across Europe, the United States, and Asia, which have helped maintain elevated volumes in other contracts across the Exchange.

Additionally, the Indian Rupee Quanto Future, the index pricing of the Indian Rupee US Dollar currency pair, performed well, trading 1,621,202 contracts year-to-date (Y-T-D), up 42.14% year-on-year (Y-O-Y).

Among the G6 Currency pairs, the Euro was the most prominent, recording its highest monthly Average Open Interest (AOI) of 3,574 contracts.

Les Male, CEO of DGCX, commented: “After a strong start to 2019 in which we expanded our portfolio of products and beat previous trading records, we have maintained our momentum into the second quarter. Consistent growth in April’s trading activity in contracts such as the Rupee Quanto Future and Euro indicates that our market participants increasingly rely on the DGCX for hedging and investment purposes, while other developments such as our new connection to an ultra-low latency network demonstrates our ongoing commitment to meet the needs of investors.

Last month the DGCX connected to a new ultra-low latency network through McKay Brothers International, a leading provider of microwave-based private bandwidth and market data services. The network further lowers the speed of transactions between the DGCX and major European and US trading hubs, enhancing its offerings to existing members, market participants and new entrants.

“We have a lot more activity planned for the rest of the year as we widen participation and further expand our member community. We particularly look forward to the launch of MENA’s first exchange-listed Mini-Gold Product in partnership with RAKBANK, which will add another dynamic layer to our product offering.”

Further underscoring a particularly busy month, the DGCX in April received a new Shari’ah certification for its Shari’ah Compliant Spot Gold contract (DGSG). The Shari’ah Pronouncement (Fatwa) was issued by Minhaj Advisory, a leading Dubai-based Islamic advisory firm, and determined that DGSG meets all the necessary Shari’ah requirements in line with Islamic rules and principles.

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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 175 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities 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 60 clearers from across the globe. For more information: www.dccc.co.ae  

Further Information:

Jonathan Fisher

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: JFisher@webershandwick.com

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McKay Brothers to connect DGCX with its ultra-low latency network

McKay Brothers to connect DGCX with its ultra-low latency network

 

The Dubai Gold and Commodities Exchange (DGCX) and McKay Brothers International (MBI), a leading provider of microwave-based private bandwidth and market data services, announced today that MBI has connected the Exchange to its European and US ultra-low latency network.

McKay’s new routes will further lower the latency between the DGCX and major European and US trading hubs, thus improving the ability of McKay Brothers’ clients to not only access the DGCX, but also to trade in the most effective manner.

Les Male, CEO of DGCX, commented: “We are delighted to welcome McKay Brothers to the DGCX. The addition of the DGCX to their network and of McKay Brothers to ours, will enhance both of our offerings to existing members, market participants and new entrants too.”

MBI Managing Director Francois Tyc declared: “In a high-growth market like the Dubai Gold and Commodities Exchange, it is vital for members, participants and especially market-makers to access optimal low latency market data from European and American markets. The McKay services offered at DGCX promote a level playing field for all market participants.”

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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 175 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities 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 60 clearers from across the globe. For more information: www.dccc.co.ae  

Further Information:

Jonathan Fisher

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: JFisher@webershandwick.com

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DGCX to Expand Access to Gold with Mini-Gold Product, in Partnership with RAKBANK

DGCX to Expand Access to Gold with Mini-Gold Product, in Partnership with RAKBANK

Launch of Mini-Gold product a result of MoU signed with RAKBANK to develop bullion products

 

The Dubai Gold & Commodities Exchange (DGCX) in partnership with RAKBANK, today announced plans to launch a Mini-Gold Futures product, offering investors the chance to trade gold in smaller denominations. The contract will be the first-of-its-kind and is in response to feedback from market participants that emphasized a strong desire from smaller investors to increase their exposure in the precious metals market.

The Mini-Gold product will be made available on the DGCX platform and cleared by the Dubai Commodities Clearing Corporation (DCCC). Initially, delivery will take the form of electronic transfer at RAKBANK, although as the contract develops it is envisaged that the additional capability of physical redemption will be added. The launch of the Mini-Gold contract is targeted for Q3 subject to the appropriate approvals.

Les Male, CEO of DGCX, said: “The DGCX’s decision to expand its precious metals portfolio is a direct result of the partnership we forged with RAKBANK in 2017. We are delighted to have built on this relationship and excited to announce the launch of the MENA’s first exchange-listed Mini-Gold product together. There is a strong desire to own gold in the UAE, but at present, it is difficult for smaller investors to buy Gold Futures given the large size of the contracts. This significant move will open up access for them and permit the accumulation of Gold as part of their savings, while ultimately contributing to the development of the region’s bullion market.”

Vikas Suri, Managing Director of Treasury at RAKBANK, said: “We were very pleased to join hands with the DGCX and DMCC two years ago to start work on the development of a platform that would allow customers, large and small, from across the region to acquire gold at competitive prices with just a click of a button through an integrated Digital Banking platform. I am delighted to note that this vision has now become a reality and that the end product of a significant amount of hard work, commitment and determination from all sides has culminated in the agreement to launch the DGCX Mini-Gold product. This is part of our exciting RAKGOLD project to create the UAE’s first full service, end to end bullion banking offering and we look forward to supporting the new contract as both a market maker and gold clearer.”

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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 175 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities 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 60 clearers from across the globe. For more information: www.dccc.co.ae  

Further Information:

Jonathan Fisher

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: JFisher@webershandwick.com

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DGCX’s Spot Gold Contract Receives Further Shari’ah Certification

DGCX’s Spot Gold Contract Receives Further Shari’ah Certification

Minhaj Advisory issues Shari’ah Pronouncement (Fatwa) determining that contract is in line with Islamic rules and principles

 

The Dubai Gold & Commodities Exchange (DGCX) has received a new Shari’ah certification for its Shari’ah Compliant Spot Gold contract (DGSG). The Shari’ah Pronouncement (Fatwa) was issued by Minhaj Advisory, a leading Dubai-based Islamic advisory firm, and determined that DGSG meets all the necessary Shari’ah requirements in line with Islamic rules and principles.

The DGCX, with the support of Ayedh Bin Dejem Group, one of the largest oil transportation and storage platforms in the region, launched the GCC’s first and the world’s only Shari’ah Compliant Spot Gold contract in March last year. Amanie Advisors LLC, another leading global Islamic Finance advisory firm, was involved with advising DGCX on the product structure and issued a Fatwa affirming that it is Shari’ah compliant in December 2017.

Les Male, CEO of DGCX, said: “We are delighted to receive further Shari’ah certification for our Spot Gold Contract and help shape the progressive role Dubai is playing in developing the Islamic finance sector. We are confident that this Fatwa will encourage new participants to trade and invest in the world’s only exchange-traded Shari’ah compliant gold product while giving additional confidence to existing Islamic investors. These types of financial instruments are significantly increasing in popularity, and greatly reflect the growing potential of Islamic finance across the UAE and wider GCC region.”

Professor Yousef Abdullah Al Shubaily, Shari’ah Advisor, Minhaj Advisory, said: “Our vision is to lead and excel in meeting the needs of financial institutions in accordance with the rules and principles of Shari’ah. With this unique product, the DGCX has demonstrated its commitment to meeting the standards put forward by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), while underpinning Dubai’s vision to become the global capital of Islamic finance.”

Matar Al Zahrani, CEO, Ayedh Bin Dejem Group, added: “Islamic finance is extending its influence across the globe with more and more institutions embracing Shari’ah compliant instruments. DGCX’s Shari’ah Compliant Spot Gold Contract is a terrific example of this, and its success shows the growing appetite for Islamic financial products and services.”

Last year, the DGCX partnered with the Dubai Islamic Economy Development Centre (DIEDC) to strengthen Dubai’s Islamic finance economy, agreeing to share knowledge, promote Shari’ah compliant finance, and put a framework in place to help introduce other successful Islamic products on the DGCX trading platform with the aim of ensuring that as a hub, Dubai remains at the forefront of the Islamic financial economy.

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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 175 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities 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 60 clearers from across the globe. For more information: www.dccc.co.ae  

Further Information:

Jonathan Fisher

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: JFisher@webershandwick.com

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DGCX Year-on-Year Growth up over 20%; Additional Base Metals Product Launch Highly Successful

DGCX Year-on-Year Growth up over 20%; Additional Base Metals Product Launch Highly Successful

 

Building on its existing portfolio of metals products, the Dubai Gold & Commodities Exchange (DGCX) successfully launched two new contracts, Aluminium Futures and Zinc Futures on 22nd March 2019. The products have been very well received by investors and traded a combined total of 598 lots on their opening day.

Les Male, CEO of DGCX, said: “These new products were developed after close consultation with our members and market participants, and are the first Aluminium and Zinc Futures to be launched in the GCC. We are delighted they have received such a great response, as we grow regionally and expand internationally widening participation and increasing our member base. These contracts are particularly appealing to global clearers, metal producers and finance houses so we are confident that they will see significant growth in trading activity over the next few months.”

All trades in the new contracts are cleared by the DGCX’s wholly-owned and regulated clearing house, the Dubai Commodities Clearing Corporation (DCCC), which is recognized by the European Securities and Markets Authority as a third-country central counterparty.

“The consistent growth of our product suite and trading volumes is a key measure of our recent success and comes as a direct result of our expanding member community. Moving forward, we will continue to focus on being a member-led exchange, introducing innovative products and solutions that meet the growing needs of our investors,” Male added.

The size of each Aluminium Futures and Zinc Futures contract is 5 metric tons (MT), denominated and traded in US dollars.

Trading Activity in March 2019

The DGCX recorded 20.4% year-on-year (Y-o-Y) growth in March, trading over 1.84 million contracts with a notional value of over USD 36.6 billion. Average Daily Volumes (ADV) throughout the same month also increased, registering 87,995 contracts.

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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 175 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities 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 60 clearers from across the globe. For more information: www.dccc.co.ae  

Further Information:

Jonathan Fisher

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: JFisher@webershandwick.com

Continue Reading