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

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DGCX to Launch Base Metals Product Suite

DGCX to Launch Base Metals Product Suite

  • Aluminum and Zinc Futures contracts will be listed to satisfy investor appetite

The Dubai Gold & Commodities Exchange (DGCX) and Dubai Commodities Clearing Corporation (DCCC) today announced an expansion to their existing portfolio of metals products with the launch of new base metal products. The two new products, Aluminium Futures and Zinc Futures, will go live on Friday 22nd March, 2019.

The new products will provide investors with an opportunity to mitigate the risks involved in the base metal markets, and appeal to global participants by enabling them to hedge prices efficiently. The size of each Aluminium Futures and Zinc Futures contract will be 5 metric tons (MT), denominated and traded in US dollars.

Les Male, CEO of DGCX, commented: “We are excited to introduce new products to meet the ever-growing needs of our member community. The imminent launch of these two products is a response to growing demands and investor feedback, and will play an important role in the DGCX Group’s growth strategy moving forward. We are confident that they will further strengthen our value proposition to all participants across the non-ferrous metals supply chain, while complementing our existing portfolio of diverse products.”

The new products will be cash settled in US Dollars, and EFS, EFP and Block trading will be permissible in the contracts.

“All trades in the new contracts will be cleared by our wholly-owned and regulated clearing house, the Dubai Commodities Clearing Corporation (DCCC). The DCCC is recognized by ESMA as a Third-Country Central Counter Party and has rightfully earned itself a credible reputation acting as a guarantor to all trades executed on the DGCX,” Male added.

Trading Activity in February 2019

The DGCX traded over 1.62 million contracts in February, valued at USD 31.1 billion. DGCX’s currency portfolio saw robust trading activity throughout February. Euro Futures and Rupee Mini Futures recorded their highest monthly Average Open Interest (AOI) of 2,919 and 119,173 contracts respectively. Open Interest is defined as the number of contracts outstanding in derivatives (such as futures and options) trading at any time on a market and is a definitive measure of a product’s and wider exchanges success.

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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 Starts 2019 Strongly Amidst Continued Global Volatility

DGCX Starts 2019 Strongly Amidst Continued Global Volatility

The Dubai Gold & Commodities Exchange (DGCX) has had its best start to a year on the back of continued global volatility, trading a total of 1.93 million contracts in January with a value of USD 38.09 billion, beating its previous best January recorded in 2018.

DGCX’s trading activity last month was boosted by a series of significant political events, including the ongoing partial US government shutdown, and heightened trade tensions between the US and China. Various comments made by OPEC in relation to oil production cuts also caused financial market volatility, bolstering the performance of DGCX’s hydrocarbons portfolio, which last month saw Brent Crude Oil Futures and West Texas Intermediary (WTI) Futures record Y-O-Y growth of 61% and 113% respectively.

Les Male, CEO of DGCX, commented: “After an incredibly strong 2018, we have made a very promising start to the year against a volatile backdrop, which saw financial markets, across various asset classes hit recent lows on Christmas Eve, and then rally into the New Year and beyond. The performance of our hydrocarbons products was particularly of note, as well as our Indian Rupee Futures contracts.

DGCX’s Indian Rupee Quanto Future, the index pricing of the Indian Rupee US Dollar currency pair, traded 410,504 contracts and registered Y-O-Y volume growth of 85%, further underpinning the Exchange’s strong start to the year.

“With many major political developments and further instability on the horizon, global markets are likely to continue experiencing sharp bouts of volatility throughout 2019. In light of this, we expect increased demand for derivative products for hedging and investment purposes and we are confident that DGCX will continue to play an increasingly important role for investors within the region,” Male added.

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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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