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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
6
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: [email protected]
Website: www.dgcx.ae
Sales & Relationship Management: [email protected]
Products: [email protected]
Membership: [email protected]
Clearing: [email protected]
Support: [email protected]
Compliance: [email protected]
Contact Us
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