DGCX celebrates 15th anniversary, trades 154 million lots at value of USD 4 trillion
Established in 2005, the Dubai Gold & Commodities Exchange, DGCX, today stands as the largest and most diversified derivatives exchange in the Middle East, providing guaranteed settlement and reduced counterparty risk through the Dubai Commodities Clearing Corporation, DCCC, a 100 percent owned subsidiary by DGCX.
Over the last 15 years, the exchange has traded a total volume of 154 million lots and total value of USD 4 trillion. The exchange trades between $2 – $3 billion per day of underlying notional value in four asset classes: FX, Equities, Hydrocarbons and Metals.
Ahmed bin Sulayem, Chairman of DGCX, said: “For many years now, Dubai has long been recognized as a leading international hub for trade, especially in gold and physical commodities. While this year has been particularly challenging due to the global pandemic, there remains room for optimism and we are grateful for the local government taking strong action to mitigate the impact. In an environment in which developments such as the pandemic or Brexit require robust hedging strategies, DGCX is proud to continue to be a vital part of the UAE’s growth, helping drive liquidity in the market and strengthening Dubai’s position on the world map for FX and equities trading. Additionally, Dubai’s strategic location means that it has retained its place as one of the most attractive places in the region, and indeed the world, to do business.”
Les Male, CEO of DGCX, said: “For fifteen years, the DGCX has fulfilled its role as a pioneer in the development of the region’s derivatives marketplace, providing members with a wide range of products to manage their risk effectively – and we recognize how important this is during periods of uncertainty. Our contracts have opened doors for traders in the US and Europe by providing offshore access to specific regional markets such as India, one of the largest bullion-trading hubs in the world. Going forward, we are excited to part of the country’s future growth, as we look to build upon the United Arab Emirates ability to innovate as a leading hub between East and West.”
Since inception, the DGCX has achieved several market-first milestones. In 2018, the exchange launched the Middle East’s first-ever Sharia Compliant Spot Gold Contract, which has seen record trading. The exchange has also widened investor participation and enhanced liquidity in the market while remaining the largest global liquidity pool for Indian Rupee, INR, futures trading. Most recently, the DGCX launched the Weekly INR Futures Contract including the three FX Rolling Futures contracts, Euro, Pound Sterling and Australian Dollar against the US Dollar, to provide market participants with short-term hedging opportunities.
In line with the exchange’s vision to become the Exchange and Clearing House of choice for the GCC, the DGCX continues to be focused on partnerships that will improve and upgrade the quality of its products and services and expansion of our member base community
WAM
