Dubai Gold & Commodities Exchange

Last updated
Dubai Gold & Commodities Exchange
بورصة دبي للذهب والسلع
IndustryDerivatives exchange
Founded2005
Headquarters
Jumeirah Lake Towers, Dubai
,
Key people
Ahmed Sultan Bin Sulayem, Chairman - Les Male, CEO
Number of employees
50-100
Website www.dgcx.ae

The Dubai Gold & Commodities Exchange (DGCX) is a financial and commodity derivatives exchange located in Dubai, the United Arab Emirates. DGCX commenced trading in November 2005 as the first derivatives exchange in the Middle East and North Africa (MENA) region. The Exchange is owned by the Dubai Multi Commodities Centre (DMCC).

Contents

The Chairman of the Exchange is Ahmed Bin Sulayem and the Chief Executive Officer is Les Male. [1]

DGCX has 267 members. It is regulated by the Securities and Commodities Authority (UAE) of the United Arab Emirates, a member of the International Organization of Securities Commissions (IOSCO). The Exchange owns a clearing house called Dubai Commodities Clearing Corporation.

Product portfolio

DGCX trades in a wide range of derivatives contracts. The DGCX Gold Futures, when launched in 2006, introduced a new pricing benchmark for gold in the UAE – the One kilo bar gold futures contract. In 2007, DGCX launched the world's first Rupee Futures contract, which has seen rapid volumes growth over the last few years driven primarily by demand from the GCC's large non-resident Indian community.

Other products include the world's first steel rebar futures contract (2007); the MENA region's first Copper Futures contract (2012), and the region's first WTI and Brent Oil futures contracts. DGCX's portfolio of currency futures contracts also includes Australian Dollar/US Dollar, Canadian Dollar/US Dollar, Swiss Franc/US Dollar, Euro, British pound, Japanese Yen and Indian Rupee futures.

DGCX launched an Options Contract for the Indian Rupee in 2011. The contract is today the only exchange-traded Indian Rupee Options product offered outside India. [2]

Clearing House

The Exchange provides clearing service through the Dubai Commodities Clearing Corporation (DCCC), a 100% owned subsidiary of DGCX. [3] On 6 February 2024, the Joint Board of Appeal (“the Board”) of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) withdrew the recognition of DCCC as a Tier 1 third-country central counterparty (CCP) over money laundering concerns. The decision was a result from the European Commission's inclusion of the UАЕ on the list of high-risk third countries due to strategic deficiencies in their national anti-money laundering and counter-financing of terrorism (“AML/CFT”) regime, as outlined in Commission Delegated Regulation (EU) 2016/1675. [4]

Membership

Over 80% of DGCX's current membership base of 267 is from the Middle East and the Indian subcontinent. [ citation needed ]The remainder is from the US and Europe. DGCX members are from financial centres such as London, Chicago, Auckland, Mumbai and Karachi.

Electronic Trading Platform

DGCX announced a partnership with Cinnober, in June 2012, to develop a new trading platform, which DGCX hopes will further drive efficiency and liquidity in the DGCX marketplace. [5]

Awards

Related Research Articles

In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the underlying. Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard-to-trade assets or markets.

<span class="mw-page-title-main">Commodity market</span> Physical or virtual transactions of buying and selling involving raw or primary commodities

A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.

The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets.

In finance, a futures contract is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the forward price or delivery price. The specified time in the future when delivery and payment occur is known as the delivery date. Because it derives its value from the value of the underlying asset, a futures contract is a derivative.

A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. Futures exchanges provide physical or electronic trading venues, details of standardized contracts, market and price data, clearing houses, exchange self-regulations, margin mechanisms, settlement procedures, delivery times, delivery procedures and other services to foster trading in futures contracts. Futures exchanges can be organized as non-profit member-owned organizations or as for-profit organizations. Futures exchanges can be integrated under the same brand name or organization with other types of exchanges, such as stock markets, options markets, and bond markets. Non-profit member-owned futures exchanges benefit their members, who earn commissions and revenue acting as brokers or market makers. For-profit futures exchanges earn most of their revenue from trading and clearing fees.

<span class="mw-page-title-main">Commodity Futures Trading Commission</span> Government agency

The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options.

<span class="mw-page-title-main">StoneX Group Inc.</span> Financial services company

StoneX Group Inc. is an American financial services company. The company operates in six areas: commercial hedging, global payments, securities, physical commodities, foreign exchange and clearing and execution services (CES).

<span class="mw-page-title-main">Intercontinental Exchange</span> American exchange and clearing house company

Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada, and Europe; the Liffe futures exchanges in Europe; the New York Stock Exchange; equity options exchanges; and OTC energy, credit, and equity markets.

<span class="mw-page-title-main">CME Group</span> American financial derivatives company

CME Group Inc. is a financial services company. Headquartered in Chicago, the company operates financial derivatives exchanges including the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, and The Commodity Exchange. The company also owns 27% of S&P Dow Jones Indices. It is the world's largest operator of financial derivatives exchanges. Its exchanges are platforms for trading in agricultural products, currencies, energy, interest rates, metals, futures contracts, options, stock indexes, and cryptocurrencies futures.

The Forward Markets Commission (FMC) is the regulatory body for the commodity market and futures market in India. It is a division of the Securities and Exchange Board of India, Ministry of Finance, Government of India. As of July 2014, it regulated Rs 17 trillion worth of commodity trades in India. It is headquartered in Mumbai and this financial regulatory agency is overseen by the Ministry of Finance. The Commission allows commodity trading in 22 exchanges in India, of which 6 are national.

LCH is a British clearing house group that serves major international exchanges, as well as a range of OTC markets. The LCH Group consists of two subsidiaries: LCH Ltd based in London and LCH SA based in Paris.

<span class="mw-page-title-main">Ahmed Sultan Bin Sulayem</span> Emirati businessperson

Ahmed Sultan Bin Sulayem is an Emirati businessman, and the executive chairman of Dubai Multi Commodities Centre (DMCC), and Jumeirah Lakes Towers (JLT). He is the son of Sultan Ahmed bin Sulayem.

Indonesia Commodity and Derivatives Exchange (ICDX) (Indonesian: Bursa Komoditi dan Derivatif Indonesia) is the commodity and derivatives based exchange in Indonesia.

<span class="mw-page-title-main">Integral Forex</span> Turkish-based online brokerage and branch of Integral Securities

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<span class="mw-page-title-main">India International Exchange</span> Indias first international exchange

The India International Exchange Limited (India INX) is India's first international stock exchange which is launched as a subsidiary of the Bombay Stock Exchange (BSE). It is located at the International Financial Services Centre, GIFT City in Gujarat.

<span class="mw-page-title-main">Securities market participants (United States)</span>

Securities market participants in the United States include corporations and governments issuing securities, persons and corporations buying and selling a security, the broker-dealers and exchanges which facilitate such trading, banks which safe keep assets, and regulators who monitor the markets' activities. Investors buy and sell through broker-dealers and have their assets retained by either their executing broker-dealer, a custodian bank or a prime broker. These transactions take place in the environment of equity and equity options exchanges, regulated by the U.S. Securities and Exchange Commission (SEC), or derivative exchanges, regulated by the Commodity Futures Trading Commission (CFTC). For transactions involving stocks and bonds, transfer agents assure that the ownership in each transaction is properly assigned to and held on behalf of each investor.

<span class="mw-page-title-main">Metropolitan Stock Exchange</span> Indian stock exchange

Metropolitan Stock Exchange of India Limited (MSE) is a stock exchange under the ownership of Ministry of Finance, Government of India. The Exchange was notified of a "recognized stock exchange" under Section 2(39) of the Companies Act, 1956 by the Ministry of Corporate Affairs, Govt. of India, on December 21, 2012. The exchange's shareholders are some of India's top public sector banks, private sector banks, and domestic financial institutions.

The Global Association of Central Counterparties or CCP Global, formerly CCP12, is the trade association of central counterparty clearinghouses (CCPs) located in Amsterdam in the Netherlands, and China. It represents 39 primary members, and 3 observer members of CCPs operating across Africa, the Americas, Asia, Australia and Europe and representing over 60 individual CCPs. CCP12 was formed in 2001 by major central counterparty organizations in Europe, Asia and the Americas to share CCP related information and to develop analyses and policy standards for common areas of concern.

<span class="mw-page-title-main">Shanghai Clearing House</span> Financial infrastructure in China

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References

  1. "DGCX to expand access with mini-gold product". gulfnews.com. Retrieved 2019-07-02.
  2. "DGCX volumes reach all-time high of 9.6m contracts". Arab News. Retrieved 2013-09-05.
  3. "Dubai Commodities Clearing Corporation - Company Directory". ArabianBusiness.com. 2013-09-01. Retrieved 2013-09-05.
  4. "ESA's Joint Board of Appeal confirms ESMA's decision to withdraw the recognition of Dubai Commodities Clearing Corporation". EIOPA. 2024-02-06. Retrieved 2024-02-14.
  5. "DGCX, Cinnober sign partnership deal". Gulf Today. 2012-06-26. Archived from the original on 2013-09-05. Retrieved 2013-09-05.
  6. "Global Banking & Finance Review Awards 2012". Global Banking & Finance Review. 2012-02-03. Retrieved 2016-09-30.
  7. "FOW International Awards winners revealed". Futures & Options World - Let's Talk Derivatives. 2012-12-07. Retrieved 2016-09-30.
  8. "DGCX wins top industry awards". TradeArabia News Service. 2013-10-02. Retrieved 2016-09-30.
  9. "Global Investor Middle East and North Africa awards - winners announced". Global Investor Group. 2018-11-27. Retrieved 2018-12-06.