What products are cleared?
The Dubai Gold & Commodities Exchange (DGCX) commenced trading in November 2005 as the Middle East’s first commodity derivatives exchange and has become today, the leading derivatives exchange in the region. Dubai enjoys an ideal location between the time zones of Europe and the Far East. As an International derivatives exchange, DGCX offers a range of products from the precious metal, base metal, energy and currency sectors, to participants in the UAE as well as other parts of the world. Our goal is to ensure that DGCX is the ‘market of choice’ in the region, by listening to the needs of both existing and new market participants to provide the contracts that they wish to trade. Our range of futures contracts offers participants of the physical commodities markets, such as producers, manufacturers and end users, with a transparent means of hedging their price risk exposure. The same price risk management has previously been unavailable to producers in the Middle East. In addition, DGCX provides trading opportunities to financial communities and investment houses around the globe who wish to access the growing asset classes of commodity and currency derivatives.
The Dubai Gold and Commodities Exchange provides local participants with Futures Contracts in the worlds six major currencies which includes the Euro (EUR), Pound Sterling (GBP), Japanese Yen (JPY), Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD) versus the USD. Additionally, as part of DGCX key initiative to give access to currencies that are relevant to the region, as well as be a one stop shop for emerging market currencies, DGCX provides local participants with futures contracts in Indian Rupee (INR), Chinese Yuan (CNH) , Korean Won (KRW), Russian Rouble(RUB) and South African Rand(ZAR)
All of DGCX’s Metal Futures contracts offer international benchmark pricing to investors, speculators, hedgers and arbitragers. The DGCX Metal Futures Contract underlies include Gold, Silver and Copper.
India has a well-developed Gold Cash Market with interest in Silver steadily increasing. The India Gold – and Silver Quanto Futures Contracts on the DGCX platform, provide a price discovery and trading avenue for industry participants for Gold and Silver traded in India.
The introduction of a Spot Gold Contract on DGCX creates significant value to the physical market participants, enabling them to manage their risk appetite and facilitate a combination of strategies that can be deployed on both futures and spot platform to provide the desired yield.
In a first for Dubai, the DGCX Spot Gold Contract enables participants to take physical delivery of the commodity via a robust clearing platform. Physical trades are automatically netted off against their physical exposure on DGCX while delivery requests are initiated via a unique process of “Delivery Intention”.
Registration – and Transfer of ownership is performed via DMCC Tradeflow, which is a dedicated online platform for registering possession and ownership of commodities stored in UAE-based storage facilities. Established in 2004 as a warehouse receipt system, DMCC Tradeflow has evolved to regulating and documenting commodity trading operations in the UAE as part of the Dubai Government. See the DMCC Tradeflow brochure for further information.
This ringed fence delivery environment benefits from internationally accredited and well known local DCCC Approved Gold Brands, DCCC Approved Vaults and Warehouses and international best practice for transaction transparency.
WTI (West Texas Intermediary) is one of the premier oil benchmarks in the world. The DGCX WTI Futures Contract, paired with the DGCX’s existing USD currency suite, twill draw a stronger appeal to existing contracts on other global exchanges which are of a larger size, while the DGCX WTI Mini Contract provides accessibility to the global energy market to a wider range of participants.
The product design of The DGCX Dubai India Crude Oil brings together both the DGCX WTI prices and the flagship USDINR contract. With WTI pricing accounting for over 25% of global supply, the DICO futures contract provides accessibility to the Indian energy markets to a wider range of participants.
One of the principal functions of the DGCX Plastics Contract is to allow participants in the petrochemicals industry to discover prices which can be used as a reference or pricing for physical transactions. Physical delivery contributes toward price convergence between the DGCX Futures Market and the Physical Market. The DGCX Plastics Contract features Compulsory Physical Delivery via DMCC Tradeflow, with transparent pricing while the DGCX Plastics Mini Contract is Cash Settled for financial participants.
The Dubai Gold and Commodities Exchange is the first exchange offshore to offer options contracts. The DGCX Indian Rupee Options Contract allows market participants to hedge their Indian Rupee exposures using various option strategies as well as a combination of futures and options.
The DGCX Single Stock Futures (SSF) Contract is the first International Equity Futures product in the Middle East. The contract provides a proxy to the price performance of global blue chip shares.