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.

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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  

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Dhanya Issac/Jonathan Fisher

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Dubai Gold & Commodities Exchange set for further growth with new technology from Cinnober

Dubai Gold & Commodities Exchange set for further growth with new technology from Cinnober

Speeds up business development and improves client accessibility

The Dubai Gold & Commodities Exchange (DGCX), and its 100% fully owned subsidiary the Dubai Commodities Clearing Corporation (DCCC), the leading derivatives exchange and clearing house in the Middle East, has upgraded its integrated trading and clearing solution from Cinnober to the latest version of the 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. As the new version went live, DGCX launched the region’s first, and world’s only exchange-traded Shari’ah Compliant Spot Gold contract (DGSG).

Having received recognition from ESMA and ADGM in 2017, the DGCX is now ready to connect third-party marketplaces to its Clearing House, the DCCC, opening up for further expansion.

“With this upgrade, we’re benefiting from cutting-edge exchange and clearing technology and preparing for further growth,” says Les Male, CEO of DGCX. “The launch was smooth, operations have been enhanced, and we’ve seen great results for member accessibility and connectivity, as well as highly encouraging feedback.”

The bandwidth usage has been reduced by an average of 45% with the upgrade, giving DGCX members easier, more reliable, and cheaper access to the market.

“DGCX has always been very agile and responsive to its market, continuously launching new innovative products to serve client needs,” says Veronica Augustsson, CEO of Cinnober. “They’re an excellent example that demonstrates the benefits of an integrated solution, both in terms of the ease of adding new asset classes and instruments, as well as efficient risk management with the ability to act immediately on real-time information.”

The upgraded solution successfully went live on March 23, and operations have proven stable, continuing its track record of complete viability and availability. DGCX and Cinnober’s partnership dates back to 2012, and in 2013 they went live with a complete trading and clearing infrastructure from Cinnober, based on its proven TRADExpress software.

Products traded on DGCX include derivatives on Currencies, Metals, Hydrocarbons, and Equities. DGCX operate with a multi-asset, multi-currency technical solution for all its products. The clearing system is integrated with the trading system and monitors risk pre-trade as well as in real time, enabling efficient utilization of the market participants’ collateral. This solution allows for the easy addition of new products with a short time-to-market. Since the initial launch, DGCX has launched many new contracts without any dependency on Cinnober.

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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:

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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DGCX Year-to-date Volumes Up 35%; Shari’ah Spot Gold sees impressive debut

DGCX Year-to-date Volumes Up 35%; Shari’ah Spot Gold sees impressive debut

The world’s only exchange traded Shari’ah Compliant Spot Gold contract (DGSG), which listed on the DGCX on March 29th, has been very well received by investors, trading over 314 kilograms of gold worth USD 13.39 million since inception. The product was the first of its kind to be launched in the GCC, and its success demonstrates a strong appetite for exchange-traded Islamic products among investors.

The contract’s success reinforced the strong trading activity of the Exchange’s other gold products, with trade volumes of DGCX’s Shanghai Gold Futures growing in April by 678% year-to-date, and India Gold Quanto Futures growing by 73% year-on year. The rising popularity of gold trading comes amid ongoing polticial and economic uncertainty.

DGCX continued its record-breaking trajectory throughout April, and has now traded over 7.18 million contracts this year across all products, up 35% from last year. The main drivers, other than the aforementioned gold contracts, of last month’s trading were G6 currency pairs and Indian Rupee Futures.

Les Male, CEO of the DGCX, commented: “We are delighted to see the Shari’ah Compliant Spot Gold Contract record an impressive debut with strong interest from investors. Its success demonstrates that there is high demand for innovative Islamic financial instruments that provide exposure to attractive assets, both regionally and internationally. Our G6 currency portfolio also continued to build on its strong start to the year with consistent growth throughout April. We remain upbeat that we will see increased trading activity as we approach the second half of the year.”

Other notable performers on the DGCX last month were the Pound Sterling, which recorded Average Open Interest (AOI) of 1,584 contracts, and Brent Crude Oil Futures, which saw a substantial jump in trading volumes year-on-year.

-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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CME, DGCX, LME and Borsa Istanbul Discuss Role and Future of Global Exchanges at DMCC’s Dubai Precious Metals Conference

CME, DGCX, LME and Borsa Istanbul Discuss Role and Future of Global Exchanges at DMCC’s Dubai Precious Metals Conference

 

At the DMCC hosted Dubai Precious Metals Conference, four of the world’s foremost Exchanges gathered for the first time in Dubai to discuss ‘The Role and Future of Global Exchanges’.

The DMCC subsidiary, DGCX together with invited guests; CME, LME and Borsa Istanbul discussed their views on the role of their respective exchanges on the markets going forward, in a panel sponsored by the Gold trading powerhouse INTL FC Stone and moderated by Somasandrum PR of the World Gold Council.

Numerous topics were discussed, with the overall opinion that co-operation within the sector was key. Les Male, Chief Executive Officer, DGCX, said: “Our main aim is to extend the work of exchanges to work together throughout Asia. Traders are looking for efficiency so that they can work across many exchanges and have a unified clearing house. We want greater cooperation and alliances to give traders added value. More can be done to achieve this and we would like to spearhead it.”

His view was echoed by the panellists, Alex Shaw, Yang Lu, Hakan Aytekin and Jiao Jinpu. Further discussions on the nature of change that global futures markets have undertaken and continue to undertake included such topics as Electronic Trading, Price Discovery, Visibility, Growth and the evolution of the Spot-to-Futures markets.

There was also the acknowledgement from the panellists that regulation has played, and will continue to play a large part in the future evolution of exchanges. Alex Shaw, Head of Market Development – Precious Metals, London Metals Exchange, said:

There has been extreme pressure on the LME due to regulatory change. That has changed the way of doing business. In this new era of a highly regulated gold market and interconnection between markets, we had banks coming to us to be able to provide the trading of spot and futures positions within the existing Infrastructure.

Price discovery has become a hot topic. But are they discreet and justify the prices provided by different regional markets, or are we so interconnected that the same prices run through to all the exchanges? I believe that all regional markets can all have their own price and justify having their own price. There is a profound change in trading. Price discovery and centres of trading exist for historical reasons. Will they stay relevant? Although we see a big increase in the scale of trading in Asian markets, I see LME still retaining a key role in trading and price discovery. There are more opportunities for the LME to consolidate.”

Over the last twenty years trading exchanges have become increasingly reliant on Electronic Trading as trading floors have been closed enabling greater anonymity when trading, whilst the tightening of regulatory oversight, as well as the introduction of low latency solutions, has helped to drive volumes and increase price discovery amongst international and regional exchanges.

Yang Lu, Director, Metals Products, CME, based in London, said: “Electronic trading provides convenience and price discovery wherever you are. We are definitely not losing out, but rather riding on the momentum of trade moving from West to East. We are already this year seeing further strong growth and this is coming from Asian clients and EMEA countries. At CME, electronic trading is open 24 hrs a day and people can trade anywhere at any time. There is certainly a change in the market that we can feel.”

Another key take away was benchmarking. Global benchmarks are often created through access, volume traded and longevity. Further to this as an exchanges position within its own country and wider region adds additional weight to the way markets view benchmarks. Emphasising this, and with a further compliment to co-operation Jiao Jinpu, Chairman, Shanghai Gold Exchange added in an earlier keynote:

Opening up the Shanghai Gold Exchange and innovation are the main issues that we are promoting. We want to open the Chinese market to the global market in order to increase business and to promote the SGE gold benchmark market. We launched a new contract with the Dubai Gold & Commodities Exchange last year and we are very happy with the success of it. This is an example of the kind of cooperation that we are searching for in finding and working with new partners.”

After the panel discussion, it was clear the audience attention was peaked with each of the panellists being in demand to answer questions on the various points raised.

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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:

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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DGCX Shari’ah Compliant Spot Gold Sees World-Record Volumes on the First Day of Trading

DGCX Shari’ah Compliant Spot Gold Sees World-Record Volumes on the First Day of Trading

dgcx-growth-march18

The GCC’s first and the world’s only Shari’ah Compliant Spot Gold contract (DGSG), was listed on the DGCX on March 29th. The contract opened with world-record Exchange traded Shari’ah Compliant Gold volumes on the first day of trading. The product traded volume of 84 Kilograms worth USD 3.56 million, on its opening day. The contract’s launch follows months of planning and preparation for the DGCX, the region’s largest and most diversified derivative bourse.

Speaking on the successful launch of DGSG, Les Male, CEO of DGCX, said: “Usually, the first few days of trading on a new product is a good gauge for us to take note of the investor appetite and interest. In the case of DGSG, it has been positive so far and we are anticipating considerable growth. It gives us great confidence and comfort in knowing that DGSG is a product that our market participants want to trade and benefit from. Indications suggest that the product will have a wider appeal throughout the GCC and traditional investment world who would like to access the world’s only Shari’ah Compliant gold contract traded on Exchange”

INTL FCStone, the approved market maker for the product, will ensure the optimal level of liquidity is maintained in the marketplace. Amanie Advisors LLC, a leading global Islamic Finance advisory firm, have been involved with advising DGCX on the product structure as well as obtaining a Fatwa. The DGSG is certified by reputable Sharia scholars and in line with AAOIFI standards (The Accounting and Auditing Organization for Islamic Financial Institutions) as set out by the World Gold Council in 2016.

Male added: “Listing this unique product is a great milestone for DGCX and the wider Islamic Finance industry as it enables the efficient diversification of Islamic investment portfolios through the ownership of Shari’ah compliant gold. The huge appetite for trading this product also reflects the growing popularity of Shari’ah compliant investments across the globe. Listing Shari’ah Compliant Spot Gold in a dynamic and fast-growing market like the UAE, makes perfect sense as the country is well on its way to becoming the global leader for a diversified and inclusive Islamic finance economy.”

Trading Activity in Q1 2018

DGCX traded over 5.5 million contracts in the first quarter of the year, growing 37% from last year. The Exchange’s best performing products in Q1 were Indian Rupee, G6 Currencies and Shanghai Gold.

The Indian Rupee grew 22% from Q1 2017, while the G6 Currency futures recorded their best start to the year, trading a combined 215,501 contracts in Q1, up 115% from 2017.

-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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