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.

-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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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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DGCX Announces the GCC’s first Sharia-compliant Gold product with INTL FCStone Commodities DMCC as Market Maker

DGCX Announces the GCC’s first Sharia-compliant Gold product with INTL FCStone Commodities DMCC as Market Maker

The first ever Sharia-compliant Spot Gold contract to go live on March 29

Dubai, March 5, 2018: Leaving no stone unturned in the lead-up to the launch of its ambitious Sharia-compliant Spot Gold contract, the Dubai Gold & Commodities Exchange (DGCX) today announced INTL FCStone, a leading international financial services firm, as the market maker for the product. DGCX’s physically-backed Sharia-compliant Gold contract is the first-of-its-kind and will mark the Exchange’s entry into the Islamic Finance sector. Trading will commence on the Exchange from March 29, 2018.

DGCX has been working with Ayedh Dejem Group from the Kingdom of Saudi Arabia to launch the Sharia Spot Gold contract, which will be the GCC’s first ever Sharia-compliant Spot Gold product to be listed on a regulated and reputed Exchange platform.

Amanie Advisors LLC, a leading global Islamic Finance advisory firm, has been advising the DGCX on this initiative. The Sharia-compliant Spot Gold contract is certified by reputed Sharia scholars and in line with AAOIFI standards (The Accounting and Auditing Organization for Islamic Financial Institutions).

DGCX’s Sharia-compliant Spot Gold contract is strategically placed to launch at a time when Sharia-compliant investments across the globe are worth an estimated USD 2 trillion, with gold constituting a sizable proportion of those investments.

Les Male, CEO of DGCX, commented: “We are excited to have INTL FCStone come on-board as the market maker for the launch of our Sharia-compliant Spot Gold contract. Given their deep expertise and capability in precious metals trading, INTL FCStone will bring much-needed liquidity to the marketplace and ensure that we have a strong start to trading. There is already a tremendous amount of interest to hedge and invest in this product given the recent trends in global geopolitics and increased volatility in gold. This contract is designed to meet the requirements of the varied trading needs of our customer base within the UAE, Saudi Arabia and the wider GCC region. Our partnership with INTL FCStone will attract more global investment to this product.”

As the largest and the most diversified derivatives bourse in the Middle East, DGCX is confident of the product’s success and believes it will encourage new and existing institutional participants to invest and trade in Sharia-compliant products.

“Gold remains a good hedge against inflation as well as any financial uncertainties and is, therefore, a preferred asset within any prudent investment portfolio. DGCX’s Sharia-compliant Spot Gold will have a wider appeal among investors in the region and worldwide,” Male concluded.

Barry Canham, Global Head of the precious metals business at INTL FCStone, said: “We are honoured to serve as the market maker for DGCX’s Sharia-compliant Spot Gold contract and excited to bring this product to market. Dubai and the MENA region more broadly are integral markets for our global Precious Metals business, and we look forward to promoting greater investment in the area alongside DGCX.  Serving as market maker for the Sharia-compliant Gold contract further enhances the services that we offer to our customer base and increases our prominent leadership position within the global bullion market.”

 

-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:

Meng Chan Shu

Director of Business Development and Sales

Dubai Gold and Commodities Exchange

Tel: +971 4 361 1660

Email: meng.shu@dgcx.ae

or

Dhanya Issac/Lara Batato

Weber Shandwick PRs

Tel: +971 4 445 4222

Email: dissac@webershandwick.com or lbatato@webershandwick.com

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DGCX Records its Best Month since Inception with 67% Growth in Volume

DGCX Records its Best Month since Inception with 67% Growth in Volume

Dubai Gold and Commodities Exchange (DGCX) continued its record-breaking start to the year while delivering its best month since inception. Last month, the Exchange traded its highest monthly Volume of 2,097,739 contracts, valued at USD 47.03 billion, recording 67% year-on-year (Y-o-Y) growth.

The Exchange has thus far recorded 53% year-to-date growth from 2017. The spikes witnessed in DGCX’s trading volumes are a clear sign of investors’ increased appetite for protection amidst market volatility. The Exchange’s best performing product segments for the month were Currencies and Precious Metals.

Trading volumes in the Indian Rupee and G6 currencies witnessed remarkable growth in February. The Indian Rupee recorded Y-o-Y growth of 38%, with over 56,328 lots valued at USD 1.74 billion trading per day. The Pound Sterling futures contract recorded 72% growth Y-o-Y, whilst the Australian Dollar recorded month-on-month growth of 150%. The star performer was the Euro, with volume growing by 207% year-to-date, registering a total traded volume of 80,544 contracts thus far this year.

From the Precious Metals suite, DGCX’s Gold Quanto Futures recorded its highest monthly average volume of 1,714 contracts, with Y-o-Y growth of 120% from last February. Whilst Shanghai Gold set various volume and traded value records throughout the month.

Les Male, CEO of the Dubai Gold and Commodities Exchange, commented: “Last month was an extremely volatile period for the global financial markets, because of which traders are continuously seeking protection and various hedging mechanisms to mitigate their risk. These volatility spikes correspond with the record trading volumes and increased participation at the DGCX, as the Exchange offers a diverse range of products and risk management tools that support traders and investors during rapid market movements. In addition, the Exchange deploys the best risk management and surveillance systems which allow our markets participants to trade with confidence and also monitor risk in real-time.”

Meanwhile, DGCX has received regulatory approval for its much-vaunted Dubai Spot Gold – Shariah Compliant contract with further announcements to be made in due course.

 “As global market volatility in early February rocked international markets, the Exchange’s unique product offering, and time zone advantages continue to feed into regional investors’ need for secure and effective risk management tools,” added Male.

-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:

Meng Chan Shu

Director of Business Development and Sales

Dubai Gold and Commodities Exchange

Tel: +971 4 361 1660

Email: meng.shu@dgcx.ae

or

Dhanya Issac/Lara Batato

Weber Shandwick PRs

Tel: +971 4 445 4222

Email: dissac@webershandwick.com or lbatato@webershandwick.com

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Gaurang Desai is stepping down as CEO of the DGCX

Gaurang Desai is stepping down as CEO of the DGCX

Gaurang Desai is stepping down as Chief Executive Officer of the Dubai Gold and Commodities Exchange (DGCX) effective 18th February to pursue the next chapter of his career.

Starting as Head of Operations in 2005, Gaurang was promoted to Chief Operating Officer in 2008 and assumed the role of Chief Executive Officer in 2015.

During his 12 years tenure at DGCX, Gaurang was responsible for introducing several technology and product innovations which saw the Exchange deliver a record 17.4 million contracts with an underlying value of over US$ 400 billion in 2017. We take this opportunity to thank Gaurang for his contributions and wish him every success as he transitions into the next phase of his career.

Formerly at Nasdaq, Les Male will assume the role as Chief Executive Officer with immediate effect. Les brings with him over 25 years of international and diversified experience in the Exchange and Clearing Commodities trading sector.

-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:

Meng Chan Shu

Director of Business Development and Sales

Dubai Gold and Commodities Exchange

Tel: +971 4 361 1660

Email: meng.shu@dgcx.ae

or

Dhanya Issac/Lara Batato

Weber Shandwick PRs

Tel: +971 4 445 4222

Email: dissac@webershandwick.com or lbatato@webershandwick.com

Continue Reading