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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).
 | |
| Industry | Derivatives exchange |
|---|---|
| Founded | 2005 |
| Headquarters | Jumeirah Lake Towers, Dubai , |
Key people | Ahmed Sultan Bin Sulayem, Chairman - Les Male, CEO |
Number of employees | 50-100 |
| Website | www |
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
editDGCX 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
editThe 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
editOver 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
editDGCX 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
edit- "Best Global Commodities Exchange 2012" award from Banking & Finance Review.[6]
- "Contract of the Year 2012" award for DGCX Indian Rupee Futures from FOW magazine.[7]
- "Emerging Exchange of the Year 2013" award from FOW magazine.[8]
- "Exchange of the Year" at the Global Investor MENA Awards 2018.[9]
References
edit- ^ "DGCX to expand access with mini-gold product". gulfnews.com. Retrieved 2019-07-02.
- ^ "DGCX volumes reach all-time high of 9.6m contracts". Arab News. Retrieved 2013-09-05.
- ^ "Dubai Commodities Clearing Corporation - Company Directory". ArabianBusiness.com. 2013-09-01. Retrieved 2013-09-05.
- ^ "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.
- ^ "DGCX, Cinnober sign partnership deal". Gulf Today. 2012-06-26. Archived from the original on 2013-09-05. Retrieved 2013-09-05.
- ^ "Global Banking & Finance Review Awards 2012". Global Banking & Finance Review. 2012-02-03. Retrieved 2016-09-30.
- ^ "FOW International Awards winners revealed". Futures & Options World - Let's Talk Derivatives. 2012-12-07. Retrieved 2016-09-30.
- ^ "DGCX wins top industry awards". TradeArabia News Service. 2013-10-02. Retrieved 2016-09-30.
- ^ "Global Investor Middle East and North Africa awards - winners announced". Global Investor Group. 2018-11-27. Retrieved 2018-12-06.