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DGCX signs MoU with Multi Derivatives Exchange Nepal

DGCX signs MoU with Multi Derivatives Exchange Nepal

 

The Dubai Gold & Commodities Exchange (DGCX) and the Multi Derivatives Exchange Nepal (MDX), a proposed derivatives exchange in Nepal that has applied for a regulatory license from SEBON to operate a commodities and derivatives exchange, today announced the signing of a Memorandum of Understanding (MoU), agreeing to collaborate and share knowledge on areas of mutual benefit surrounding commodity trading. DGCX and MDX will host workshops and meetings to further the scale of the alliance and promote strong cooperation between the exchanges.

Under the MoU, DGCX will work closely with MDX in areas of shared interest including trading, clearing, settlement, delivery of contracts, compliance and surveillance, contract design and pricing, technology, and risk management.

Les Male, CEO of DGCX, added:“This agreement comes in accordance with our vision to expand our knowledge base, and foster more collaboration in the industry and across borders. At DGCX, we are always looking for innovative ways to develop and enhance our offering, and we are confident that this partnership will lead to a successful and fruitful outcome that is mutually beneficial to both parties.” 

Dipak Raj Pandey, Coordinator of MDX, said: “DGCX and MDX share a common goal to follow international best practices and provide innovative derivatives products to our members. The signing of this MoU is a significant step towards productive collaboration, and will allow us to leverage each other’s strengths, knowledge and experiences.”

Les Male, CEO of DGCX, Dipak Raj Pandey, Coordinator of MDX, signed the agreement at the DGCX office in Dubai at a ceremony attended by senior representatives from both sides.

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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 Sees Gold Futures Trading Surge as Investors Flock to Safe-Haven Assets

DGCX Sees Gold Futures Trading Surge as Investors Flock to Safe-Haven Assets

DGCX July 2019

The Dubai Gold & Commodities Exchange (DGCX) saw a surge in trading on its flagship Gold Futures product last month, as increasing geopolitical tensions across the globe drove investors towards safe-haven assets. The product recorded month-on-month (M-O-M) average daily volume growth (ADV) of 507.4%, and year-on-year ADV growth of 225.5%, while also registering M-O-M Average Open Interest (AOI) growth of 90.7%.

Les Male, CEO of DGCX, commented: “Gold reasserted its position in June as the safe-haven asset of choice, as investors worldwide flocked to the precious metal on the back of fresh speculation around lower Federal Reserve rates, a weak US dollar, and heightened geopolitical tensions between the US and Iran. This was strongly reflected on the DGCX, with our Gold Futures contract registering its best month since November 2016.”

The DGCX traded over 1.73 million contracts in June, with the Exchange’s currency portfolio also experiencing an upswing in trading, particularly its Indian Rupee (INR) product suite. INR Mini Futures registered its highest quarterly AOI with 114,817 contracts between April and June, while INR Quanto Futures, the index pricing of the Indian Rupee US dollar currency pair, registered its best month since March 2016 with a total of 578,872 contracts traded. Euro Futures was another standout performer, registering its highest quarterly AOI with 3,582 contracts, building on its strong trajectory from May as Brexit talks continue.

“We have invested significant time and energy this year on building our product portfolio and strengthening our current contracts. We are thrilled to see continued growth as an increasing number of investors recognize the value they offer for hedging purposes, particularly in periods when markets are experiencing sharp volatility,” added Male.

In light of such strong performances, the DGCX recorded its third highest quarterly AOI with 355,365 contracts over the last three months. 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 exchange’s success.

“The next few months will be a particularly busy period for the DGCX, as we aim to introduce new regionally relevant products in response to member demand. We are confident that we will enter the second half of the year on the same positive note in which we ended the first, building on our momentum and widening investor participation,” concluded Male.

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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 Records Highest Average Open Interest Since 2016 Following Spike in Indian Rupee Trading

DGCX Records Highest Average Open Interest Since 2016 Following Spike in Indian Rupee Trading

 

The Dubai Gold & Commodities Exchange (DGCX) saw a spike in Indian Rupee (INR) trading last month as the India election came to a close, leading the Exchange to record a monthly Average Open Interest (AOI) of 406,203 contracts in May, its highest AOI since November 2016. Ongoing political tensions across Europe on the back of continued Brexit talks also saw Euro Futures record its highest monthly Average Open Interest (AOI) with 3,886 contracts. For the month of May, a total of 1,827,176 contracts were traded, valued at USD 35 billion.

All three INR contracts performed well last month. INR Quanto Futures, the index pricing of the Indian Rupee US dollar currency pair, recorded its best month ever in May, and has now traded over 2 million lots year-to-date, up 28% year-on-year. Rupee Mini Futures recorded the third highest AOI with 117,390 contracts in May.

Les Male, CEO of DGCX, commented: “The Open Interest levels we set in May reflect the robustness of our trading platform, and are a clear indication of the sustainable growth we are experiencing in resident interest and liquidity. This comes as no surprise as we push forward with our efforts to provide our market participants with a wide range of products to effectively manage their risk and protect themselves during volatile times. Last month was a prime example of this, as we saw our INR portfolio perform especially well as the India election came to a close, and our members sought our contracts for hedging and investment purposes.”

DGCX’s West Texas Intermediary (WTI) Futures also gained traction in May following increased volatility in oil markets. The contract recorded month-on-month volume growth of 90%, and Y-O-Y growth of 74%.

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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 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

Continue Reading