Dubai Gold and Commodities Exchange
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| Dubai Gold and Commodities Exchange | |
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| Founded | 2005 |
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| Headquarters | Dubai, UAE |
| Key People | Ahmed Bin Sulayem, Chairman; Jignesh Shah, Vice-Chairman |
| Products | Futures and options in gold, silver, steel, fuel oil and currencies |
| Corporate Website | www.dgcx.ae |
The Dubai Gold and Commodities Exchange (DGCX) was launched in November of 2005 as part of the Gulf emirate’s efforts to establish a global financial services hub. The electronic platform was branded as the first commodities exchange in the Middle East, initially offering futures on gold, and expanded to include contracts on silver, fuel oil, steel and four currency pairs, and options on gold futures.
The DGCX is backed by the state-controlled Dubai Multi Commodities Centre (DMCC), the government of Dubai, Financial Technologies (India) Ltd and the Multi Commodity Exchange of India (MCX).
The exchange has a fee structure in which all participants, whether commercial or non-commercial, pay the same margin.
DGCX's new trading platform, the EOS Trader Platform, went live on March 12, 2013, marking the completion of the exchange's new technology infrastructure.[1]
Contents |
History
The DGCX is one of four financial exchanges in the Gulf emirate, and one of two targeting the commodities sector, alongside the rival Dubai Mercantile Exchange.
The DGCX launched its first contract, a gold futures contract, in November 2005[2] and has added derivatives on silver, fuel oil, WTI and Brent Crude Oil, steel and four currency pairs. It has plans to add contracts based on plastics on February 5, 2009.
The exchange has over 200 members and is regulated by the Emirates Securities and Commodities Authority. Clearing is provided by the wholly-owned subsidiary Dubai Commodities Clearing Corporation.
The DMCC owns 51 percent of the venture, with Financial Technologies owning 39 percent - and providing the infrastructure - and the MCX holding 10 percent. The exchange was originally a 50/50 joint venture before the DMCC acquired an additional 1 percent from its Indian partners for $12.5 million in early 2007.[3]
Framroze Pochara, a former vice-president of the National Stock Exchange of India, was recruited as CEO in mid-2005, but stepped down in mid-2007 to be replaced by Colin Griffith. In November 2011, Stephen Gaterell took the role of CEO at DGCX, until April 2012 when Gary Anderson replaced him.[4]
Product Development
DGCX offers a range of contracts covering precious metals, energy, metals and currencies. The launch of a gold futures contract in December 2005 was followed in March 2006 by a silver future, with three currency pairs – the dollar against sterling, euro and the yen – followed in October 2006 by a fuel oil future, the latest of many efforts to establish a Middle East crude oil futures benchmark. In May 2007, the exchange launched futures on WTI and Brent crude oil.
Contract volumes in the currency complex surpassed the bullion business for the first time on Apr. 19, 2007 and a fourth currency pair – billed as the first exchange-traded dollar/rupee contract – was launched in June 2007. Exchange volumes passed 200,000 contracts for the first time in the quarter to June 2006 and climbed to 256,094 – with a near-tripling in notional value to $9.02 billion in the June quarter of 2007.
Its first steel future was launched in October 2007.
In March of 2013, DGCX signed a licence with MSCI to launch futures on the MSCI India index, which represents about 85 per cent of the market. The futures contract marks the exchange's first step into equities, away from currencies and commodities.[5]
Future product plans include a suite of four plastics futures for delivery at points in the Middle East and Southeast Asia. The plastics contracts were slated to launch in mid-2007, but this has been delayed until February 2009.[6] Executives have also held talks with the Bursa Malaysia about a partnership in palm oil futures, with contracts in freight rates, cotton and pulses also under consideration.[7]
On April 22, 2013, DGCX announced the launch of a Mini Indian Rupee Futures Contract (DINRM). The mini contract is one-tenth the size of the existing DGCX Indian Rupee futures contract.[8]
Precious Metals:
- Gold Futures
- Options on Gold Futures
- Silver Futures
Currencies:
- Indian Rupee - US Dollar FX Futures Contract
- Options on Indian Rupee Futures
- Mini Indian Rupee futures
- Euro - US Dollar FX Futures Contract
- Sterling - US Dollar Futures Contract
- Japanese Yen - US Dollar FX Futures Contract
- Australian Dollar - US Dollar FX Futures Contract
- Canadian Dollar - US Dollar FX Futures Contract
- Swiss Franc - US Dollar FX Futures Contract
Energy:
- Fuel Oil Futures
- Crude Oil Futures
Steel:
Regulatory
The DGCX is regulated by the Emirates Securities and Commodities Authority (ESCA). Established in 2000, ESCA is the supervisory and executive public authority overseeing DGCX.[9]
ESCA is a member of the International Organisation of Securities Commissions (IOSCO) and is also the regulatory authority for the Dubai Financial Market and the Abu Dhabi Securities Market.
Key People
- Ahmed Bin Sulayem, Chairman
- Gary Anderson, Chief Executive Officer
- Gaurang Desai, Chief Operating Officer
- Rajesh Balaram, Chief Financial Officer
- Tony Day, Chief Compliance Officer
- Basab Banerjee, Chief Technology Officer
- Abdul Wahid Al Ulama, Non-executive Director
Approved ISVs [10]
External Links
References
- ↑ DGCX’s New Trading Platform Goes Live. Cinnober and DGCX press release.
- ↑ Dubai Logs in to Gold Futures. Access My Library/The Economic Times.
- ↑ DGCX newsletter. DGCX.
- ↑ Dubai exchange hires second CEO in six months. Financial News.
- ↑ Dubai to launch India futures contract. The Financial Times.
- ↑ DGCX announces further details of plastics futures contracts. Maktoob Business.
- ↑ Dubai exchange plans partnership with Bursa. The Star.
- ↑ DGCX launches Mini Indian Rupee Futures. Emirates247.
- ↑ Regulations Governing The Trading of Commodities on Licensed Markets. Dubai Gold & Commodities Exchange.
- ↑ Independent Software Vendors. Dubai Gold and Commodities Exchange.
