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DGCX and DIEDC Partner to Strengthen Dubai’s Islamic Finance Economy

DGCX and DIEDC Partner to Strengthen Dubai’s Islamic Finance Economy

Collaboration on promoting the trading of Shari’ah-compliant products

The Dubai Gold and Commodities Exchange (DGCX) and the Dubai Islamic Economy Development Centre (DIEDC) today signed a Memorandum of Understanding (MoU), agreeing to share knowledge, promote Shari’ah Compliant finance, and help foster Dubai as the global capital of Islamic economy.

Abdulla Mohammed Al Awar, CEO of DIEDC, and Les Male, CEO of DGCX, signed the agreement at the DIEDC offices at a ceremony attended by senior representatives from both sides.

Under the MoU, DIEDC will work with DGCX to promote the Shari’ah Compliant Spot Gold contract, as well as any other Shari’ah Compliant commodity product subsequently developed by the exchange to cater for the Islamic finance sector, while positioning Dubai as the hub of the Islamic economy.

Abdulla Mohammed Al Awar, CEO of DIEDC, said: “In line with our shared goal to transform Dubai into the global capital of Islamic economy, this partnership articulates the commitment of DIEDC to connect relevant stakeholders of the Islamic economy, and transfer knowledge about Islamic finance instruments, such as Shari’ah Compliant gold and commodity trading. Encouragingly, these instruments are witnessing a high uptake in servicing the growing Islamic finance sector.”

He added: “Furthermore, with the contribution of the Islamic economy to Dubai’s GDP increasing to 8.3 per cent in 2016, we now have a responsibility to boost the burgeoning non-oil sectors, in keeping with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to further diversify the national economy and increase alternative revenue streams.”

Les Male, Chief Executive Officer of DGCX, added:“Following the recent launch of the GCC’s first and the world’s only Shari’ah Compliant Spot Gold contract, this partnership with DIEDC comes at an opportune time for the DGCX. Not only will it be a crucial building block towards introducing other successful Shari’ah compliant products on our trading platform, but it will also help shape the progressive role Dubai is playing in developing the Islamic finance sector as a whole.”

   

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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 200 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 80 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 Records Highest Average Open Interest, Surpassing 300,000 Contracts for July

DGCX Records Highest Average Open Interest, Surpassing 300,000 Contracts for July

Building on a record-breaking first half of the year, the Dubai Gold and Commodities Exchange (DGCX) has begun H2 strongly, recording an Average Open Interest (AOI) of 323,477 contracts in July, bringing the AOI for 2018 to an all time high of 304,398 contracts, up 29% from 2017. The overall volumes for the month touched 1,894,155 contracts with a value of USD 38.49 billion, a year-on-year (Y-O-Y) increase of 36%.

The best performing asset classes for July were the Shanghai Gold Futures and Chinese Yuan Futures, registering month-on-month (M-O-M) volume growth of 71% and 64% respectively. The rising demand for China-centric products comes at a time when ties between the UAE and China have strengthened after the recent state visit of the president of China, Xi Jinping. Dubai India Gold was another notable performer for the month, recording a 99% increase in Y-O-Y growth.

Les Male, CEO of DGCX, commented: “Following an outstanding H1 performance, we had a number of significant achievements in July, ranging from our exceptional Open Interest performance  to expanding our collateral basket in partnership with Standard Chartered Bank. Open Interest is a true measure of an Exchange’s success, and our records this month are a reflection of the robustness of our trading platform. We are delighted to have entered the second half of the year so positively, and our focus over the next few months will be to introduce more innovative products and expand our member base both locally and internationally.”

The DGCX and its Central Counter Party (CCP) subsidiary, Dubai Commodities Clearing Corporation (DCCC), announced earlier in July that it is in the process of allowing clearing members to deliver eligible global securities as collateral. Underpinning the expansion of the collateral basket, Standard Chartered Bank is providing Custody Management Services on this additional form of collateral and is responsible for safeguarding the assets.

The Indian Rupee (INR) products and the G6 Currency Futures also continued their strong growth trajectory in July. INR volumes increased by 34% Y-O-Y, while volumes in G6 Futures grew 80% Y-T-D.

   

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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 200 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 80 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 Expands Collateral Basket in Partnership with Standard Chartered Bank

DGCX Expands Collateral Basket in Partnership with Standard Chartered Bank

 

(L-R) Motasim Iqbal, Head of Transaction Banking, Standard Chartered Bank, and Les Male, CEO of the DGCX

  The Dubai Gold and Commodities Exchange (DGCX) and its Central Counter Party (CCP) subsidiary, Dubai Commodities Clearing Corporation (DCCC), announced that clearing members can now deliver eligible global securities as collateral. To underpin the expansion of the collateral basket, Standard Chartered Bank will provide Custody Management Services on this additional form of collateral and will be responsible for safeguarding the assets. DCCC Clearing Members currently place collaterals against their margin of trading in the form of cash, bank guarantees, term deposits and Tradeflow Bullion Warrants, but will now also be able to use UK and US Government Treasury Bills, bonds, and other approved fixed income securities. The expanded collateral basket will help members efficiently utilize their financial resources and optimize financing costs. Les Male, CEO of the DGCX, commented: “We are delighted to partner with Standard Chartered Bank to expand our collateral basket. By allowing market participants to offset their margin obligations with global securities, we will increase clearing efficiencies and support further liquidity in the DGCX marketplace. The new offering will not only add value to clearing members further helping them to deploy their assets but will also provide additional security given its backing from one of the world’s most reputable banks.” Motasim Iqbal, Head of Transaction Banking, Standard Chartered Bank, UAE said: ”With our rich history of 60 years in the UAE, Standard Chartered is well positioned  to leverage its extensive global network and capabilities to ensure our client’s financial needs are catered to in an efficient and smooth manner.” DCCC operates as a Central Counter Party (CCP) offering fully integrated clearing and settlement services and collateralization of exchange-traded derivatives. DGCX/DCCC members and their clients benefit immensely from secured settlements and capital efficiency afforded to them via margin offsets and a wide range of collateral compared to any other CCPs in the region.  DCCC has handled DGCX’ clearing since inception without a single default and is recognized as a Third-Country CCP (T-CCP) by the European Securities and Markets Authority (ESMA), Abu Dhabi Global Markets (ADGM) and the Dubai Financial Services Authority (DFSA) amongst other overseas regulators.  

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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 200 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 80 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 Records Best H1 Since Inception with Volumes up 44%

DGCX Records Best H1 Since Inception with Volumes up 44%

Dubai Gold and Commodities Exchange (DGCX) has recorded its best H1 ever in its 13-year history, trading over 11,300,000 contracts so far in 2018, up 44% year-on-year (Y-O-Y). Traded value for the first six months of 2018 breached USD 250 billion for the first time too. The Exchange’s record-breaking performance was sealed following a robust month of trading in June, which saw 2,046,806 contracts traded, up 74% from June 2017. June 2018 traded value reached USD 42.3 billion.

The best performing asset classes this year have been the currencies with the Indian Rupee (INR) and the G6 Currency futures most prominent. First-half INR volumes increased by 22% from last year, driven mainly by increasing hedging appetite in volatile markets. While volumes in G6 futures grew 97% Y-O-Y to reach 387,586 contracts. The growth in G6 Currency futures was confirmed in June as the DGCX successfully physically delivered a record USD 404 million upon the contracts’ expiry. Other notable performers in 2018 include Dubai India Gold, Shanghai Gold and Chinese Yuan.

Speaking about DGCX’s record-breaking H1, Les Male, CEO of DGCX, commented:“In the first half of 2018 DGCX achieved spectacular growth and major milestones. Not only have we broken our record for the overall volume and value of contracts traded in the first six months of a year, but we’ve also set new highs in terms of Open Interest (OI) on several products.”

DGCX’s OI has also climbed with an average of 301,119 contracts open throughout the first half showing an increase of 28% over the same period in 2017. OI is often seen as a barometer to measure the success and underlying strength of an Exchange.

Male continued: “While our exceptional results have been bolstered by geopolitical uncertainty throughout 2018, with traders seeking protection and various hedging mechanisms to mitigate their risk, they have also been driven by the Exchange’s ability to enhance liquidity and widen investor participation in both established and new products. The positive response to our recently launched Shari’ah Compliant Spot Gold contract bears testament to this, and demonstrates our initiative towards further asset class diversity on the DGCX.”

Since DGCX launched the world’s only Shari’ah Compliant Spot Gold contract on March 29th, it has traded over 520 kilograms of gold worth USD 22 million. The product was the first exchange-listed Shari’ah compliant commodity product in the GCC, and currently the only Shari’ah compliant listed derivative in the world.

Male added: “We have also enhanced our trading and clearing platform this year in order to optimize the trading experience for our members. As we move into the second half of 2018, we will continue to focus our efforts on tapping similar opportunities, and we remain very confident of achieving further success in light of our extremely encouraging performance.”

In March, DGCX upgraded its integrated trading and clearing solution from Cinnober Financial Technology to the latest version of its signature TRADExpress platform. The purpose was to streamline and speed up business development capabilities even further and to benefit from a more refined trade and market data protocol, leading to improved bandwidth usage.

 

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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 200 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 80 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 Reports Record Monthly Volumes as Shari’ah Spot Gold Continues to Shine

DGCX Reports Record Monthly Volumes as Shari’ah Spot Gold Continues to Shine

   

The Dubai Gold and Commodities Exchange (DGCX) witnessed its best month ever, recording volume of 2,163,598 lots valued at over USD 46.11 billion. Throughout May an average of 94,069 contracts traded per day showing year-on-year (YOY) growth of 51%. The world’s only exchange-traded Shari’ah Compliant Spot Gold contract (DGSG) also continued to shine, with over 488 kilograms of gold worth USD 20.72 million executed since its listing on DGCX on March 29th.

The Exchange has traded over 9.3m contracts so far this year, up 39% from last year, with notional value exceeding USD 210 billion. The best performers in May were the Indian Rupee product suite, which saw Rupee Mini Futures record its highest Average Open Interest (AOI) of 108,986 contracts, and the G6 currency pairs, which saw Euro Futures record its highest monthly volume since November 2012 with 60,394 contracts and recording its highest AOI of 2,659

Les Male, CEO of the DGCX, commented: “The DGCX has enjoyed another record month of trading led by solid growth in volumes and value. Our recently launched Shari’ah Compliant Spot Gold contract also witnessed strong growth momentum which is reflective of its increasing appeal among investors and traders. Our G6 currency portfolio performed particularly well, with the foreign exchange market as a whole witnessing volatility on the back of the US dollar’s unexpected surge as well as global trade discussions. We are looking forward to further growth in activity over the rest of the year,  especially in light of our upgraded clearing and trading infrastructure.”

DGCX last month upgraded its integrated trading and clearing solution from Cinnober Financial Technology to the latest version of their signature TRADExpress platform. The purpose was to enhance and speed up business development capabilities even further and to benefit from a more refined trade and market data protocol, leading to improved bandwidth usage.

-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, 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 80 clearers from across the globe. For more information: www.dccc.co.ae  

Further Information:

Dhanya Issac/Jonathan Fisher

Weber Shandwick PR

Tel: +971 (0) 4 445 4222

Email: dissac@webershandwick.com

Email: JFisher@webershandwick.com

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