The Leading Derivatives Exchange in the Middle East · DGCX is a subsidiary of the Dubai Multi...

The Leading Derivatives Exchange in the Middle East

The Dubai Gold & Commodities Exchange (DGCX) is the largest and most diversified derivatives Exchange in the Middle East. DGCX is a subsidiary of the Dubai Multi Commodities Centre (DMCC), an entity of the Government of Dubai. Established in November 2005, DGCX offers derivatives futures and options contracts in Precious Metals, Base Metals, Currencies, Energy, Equity Indices, Single Stock Futures and Soft Commodities. DGCX is an SRO (Self Regulated Organization) regulated by the Securities & Commodities Authority (SCA) of the UAE. Clearing is provided by the Dubai Commodities Clearing Corporation (DCCC), a wholly-owned subsidiary of DGCX. DGCX operates on an industry standard technology platform called EOS powered by Cinnober, a leading exchange technology provider. DGCX today has a membership base of over 228 members and 76 clearing members.

DGCX

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Institutionalized • Subsidiary of DMCC started in 2005 • Regulated by Securities & Commodities

Authority (SCA) • Self Regulated Organisation (SRO) with its own

rules and regulations. • Operates a CCP through Dubai Commodities

Clearing Corporation (DCCC) • Member of IOSCO

Diverse Product Offering • Largest and most diversified derivatives

Exchange in the Middle East • Offers products across 5 asset Classes (Precious

Metals, Base Metals, Currencies , Energy, Equity) • First exchange to offers Single Stock Futures on

15 Global Stocks in the middle east • State of the art multi-currency Trading and

Clearing Platform

Speed & Transparency • Technology provided by Cinnober Financial

Technology, one of the world leading system provider

• Equal access to all participants • Transparent and fair Market prices and Market

information

Global / Regional Access • 228 Trading members spread globally • 17 hrs. market covering 3 geographical regions • Supports Global Fix 5 protocol • Accessible through major leading Independent

Software Vendors (ISV). • Recognized Exchange by DFSA • Recognised Market Operator by MAS

DGCX

DGCX

Global Trading Window

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Key Milestones

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2005 • DGCX First

commodities exchange in the GCC region

• Launch by H.H. Sheikh Mohammed Bin Rashid Al Maktoum

• Gold / Silver Futures

2007 • Gold Options

& Indian Rupee Futures

• Crosses 1 million lots

2008 • Affiliate

Membership of IOSCO

• MAS Recognized Market Operator

2013 • Crosses 25

million lots • System

migration to world-class EOS Platform

• Application for DCCC ESMA TC-CCP recognition (WIP)

2014 • Introduces

Multi-currency Trading and Collateral facility

2015 • Crosses 50

million lots • Introduces

AED and Bullion as Collaterals

• Launches Spot Gold & Chinese Yuan

• DGCX Recognised Body by DFSA

• SCA CCP Regulations Implemented

2016 • Launches SSF • MAS

Recognised Clearing House (WIP)

• Clearing Rules Consultation (WIP)

• Restructure/SITG/Default Fund in process

DGCX Overview

Volume growth on a yearly basis

Time zone overlaps Asia and Europe to US

trading hours.

Ideal geographic location - trading hours

7:00 am to 11:55 pm UAE ( GMT +4).

Diversified membership base covering all

major trading hubs

More than 73.5 million contracts traded

since inception.

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Tax free environment - global business

transacted & cleared in the UAE with funds

domiciled in the region offering the

benefits of local tax landscape.

Competitive transaction fee structure with

attractive incentive programs.

Same margin requirements for all

participants.

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Metals Gold

Dubai Spot Gold

Indian Gold

Silver

Indian Silver

Copper

Equities SSF (Single Stock Futures)

S&P Sensex

MSCI India & MSCI USD

Hydrocarbons WTI / Mini WTI

Brent Crude Oil

Polypropylene / Mini Polypropylene

India Crude Oil

Currencies INR-USD

Mini INR-USD

INR Quanto

INR Options

USD- CNH

USD- RUB

USD- ZAR

USD- KRW

GBP-USD

JPY-USD

CAD-USD

AUD-USD

CHF-USD

EUR-USD

DGCX Products

Hydrocarbons Natural Gas

Indian Quanto Natural Gas

Metals Gold Options

Base Metals

Shanghai Gold Futures

Equities Mini Sensex

Currencies Pakistani Rupee

Ghana Cedi

Regional GCC currencies

Agro Chick Pea

Menthe

Pepper

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DGCX Products - Pipeline

Q-o-Q Volume and Open Interest

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0

100,000

200,000

300,000

400,000

500,000

600,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Title

Title

Q-o-Q Volume and Open Interest

DGCX Average Daily Volume DGCX Average Daily Open Interest

*up to 18th of November 2016

INR Futures – Competitive Landscape

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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Jan-

2015

Feb-

2015

Mar

-201

5

Apr-

2015

May

-201

5

Jun-

2015

Jul-2

015

Aug-

2015

Sep-

2015

Oct

-201

5

Nov

-201

5

Dec-

2015

Jan-

2016

Feb-

2016

Mar

-201

6

Apr-

2016

May

-201

6

Jun-

2016

Jul-2

016

Aug-

2016

Sep-

2016

Oct

-201

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INR/USD Value Market Share Comparison

DGCX NSE SGX BSE

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DGCX Members

Regulated by the Federal Securities & Commodities Authority of the UAE.

DCCC application submitted for (TC-CCP) recognition under Article 25 of European Market Infrastructure

Regulation (EMIR).

First CCP in MENA to be SWIFT direct member.

First CCP in MENA to EuroClear Bank for collateral solutions.

First CCP in MENA to link to the Global Liquidity Hub of Clearstream.

76 active Clearers from diverse geographies such as UAE, UK, Qatar, Europe and Singapore. Span® based Up-front Gross margining with Real-time position and risk monitoring.

Protected payment system through Emirates NBD, SCB, Bank of Baroda, HSBC & Bank of China.

Bank of China , the first Chinese bank to join as a Settlement Bank.

Real-time position and risk monitoring. Settlement Guarantee Framework with Zero defaults since inception. DFSA (Dubai Financial Services Authority) has recently approved DCCC as a recognized CCP.

Dubai Commodity Clearing Corporation

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About DCCC

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Globally Regulated • 100% Subsidiary of DGCX • Regulated and licensed by Securities &

Commodities Authority (SCA) • Region’s largest Commodities Clearing

Corporation • ESMA (Europe) TC-CCP Recognition (WIP) • MAS Recognised Clearing House status (WIP)

Robust Risk Management • Novation for trades executed on DGCX • Eliminates Counter-Party Risk • Upfront Portfolio based margin under CME-

Span® • Real-time Position & Risk Monitoring • Settlement Guarantee framework (Default Fund)

with Zero default since inception

Secured Settlement • Protected payment system through Emirates

NBD, SCB, Bank of Baroda, HSBC & Bank of China • First CCP SWIFT direct member in MENA • Member of Euroclear bank and Clearstream for

Collateral solutions

International Access • 76 Clearing members spread globally • Multi-FX Clearing platform accessible globally • Capable of Clearing other Exchanges including

OTC derivatives • Collaterals accepted in 5 global currencies

DCCC

DCCC statistics at a glance

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ZERO default since inception

USD 725 billion value cleared in 2016 (as of 31 October 2016)

Products delivered so far - Euro, British Pound, Japanese Yen, Gold, Steel Rebar, Polypropylene

1,020 kg of physical Gold valued at USD$ 42 million delivered in 2016

USD 1,040 million of MTM Fund Settlement in 2016 (average daily USD 2.5 million )

Average Collateral under management USD 126 million in 2016

Open Interest of USD 7.03 billion as on 31 October 2016

Risk Management Framework

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DGCX Markets

Novation through DCCC

Upfront IM / SPAN based

RMS

Real time MTM and Monitoring

of Risks

Intra-day top up Margins when

required

T+1 Settlement of MTM P&L

Protected Payment System

4 fully networked

Clearing Banks & SWIFT Member

Settlement Guarantee Framework

Regulatory Structure

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DGCX is an SRO (Self Regulated Organization) regulated by the Securities & Commodities Authority (SCA) of the UAE.

SCA, a member of IOSCO, is the regulatory authority for the Dubai Financial Market and the Abu Dhabi Securities Market and adheres to fundamental objectives;

providing the opportunity to invest in commodities serving the interest of the national economy by establishing the basis for sound and just dealings between various investors

DGCX Compliance Department ensures Members maintain strict adherence to SCA approved DGCX By-Laws including;

client funds to be maintained in segregated bank accounts by DGCX Broker Members timely collection of margin monies from clients' segregated accounts all Exchange participants are protected from losses arising from these transactions

SCA licensed DGCX Broker Members are required to;

apply robust 'Know Your Customer' (KYC) disclosure procedures to their clients' account opening formalities to conduct business with clients to DGCX in accordance with the international ‘Best' code of practice and standards

EOS is DGCX’s customized technology solution based on Cinnober’s TRADExpress™ Platform:

Superior transaction speed.

Sophisticated order functionality.

Wide architecture of trading & clearing services.

Multi-Asset Solutions.

Multi Currency Trading.

Low-latency, high-throughput trading engine.

State-of-the-Art Matching Engines.

Robust Scila™ surveillance system.

DGCX Technology - EOS

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DGCX Technology

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DGCX offers its customers access to its market data network from the following options that enable reliable, robust, and cost efficient connectivity:

Local MPLS (Multi Protocol Label Switching)- through Etisalat & DU. International Private Leased Circuit (IPLC). Global MPLS –through SingTel & a host of other international service providers. Internet via IPSEC VPN or SSL VPN.

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Our Connectivity Solutions

DGCX offers a ‘’ first in class’’ Tier 3 Data Centre with co-location facilities:

Low latency (non blocking) network access. Dedicated fully redundant Internet links or access through Global/Local MPLS Network. Secured infrastructure. Affordable costing. Level 1 Remote support available. Support of PAAS and IAAS Model.

DGCX Technology - Network

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Our Independent Software Vendors

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Tel: +971 4361 1616

Email: info@dgcx.ae

Website: www.dgcx.ae

Sales & Relationship Management: rm@dgcx.ae

Products: products@dgcx.ae

Membership: membership@dgcx.ae

Clearing: clearing@dgcx.ae

Support: support@dgcx.ae

Compliance: compliance@dgcx.ae

Contact Us

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