The Leading Derivatives Exchange in the Middle East

Transcription

1 The Leading Derivatives Exchange in the Middle East

2 DGCX 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. 2

3 DGCX 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 DGCX 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 3

4 Global Trading Window 4

5 Key Milestones DGCX First commodities exchange in the GCC region Launch by H.H. Sheikh Mohammed Bin Rashid Al Maktoum Gold / Silver Futures Gold Options & Indian Rupee Futures Crosses 1 million lots Affiliate Membership of IOSCO MAS Recognized Market Operator Crosses 25 million lots System migration to world-class EOS Platform Application for DCCC ESMA TC-CCP recognition (WIP) Introduces Multicurrency Trading and Collateral facility Crosses 50 million lots Introduces AED and Bullion as Collaterals Launches Spot Gold & Chinese Yuan DGCX Recognised Body by DFSA SCA CCP Regulations Implemented Launches SSF MAS Recognised Clearing House (WIP) Clearing Rules Consultation (WIP) Restructure/ SITG/Default Fund in process 5

6 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. 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. 6

7 DGCX Products 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 7

8 DGCX Products - Pipeline Hydrocarbons Natural Gas Indian Quanto Natural Gas Metals Gold Options Base Metals Shanghai Gold Futures Equities Mini Sensex Currencies Agro Pakistani Rupee Ghana Cedi Regional GCC currencies Chick Pea Menthe Pepper 8

9 Q-o-Q Volume and Open Interest 90,000 Q-o-Q Volume and Open Interest 600,000 80,000 70, ,000 60, ,000 Title 50,000 40, ,000 Title 30, ,000 20,000 10, , DGCX Average Daily Volume DGCX Average Daily Open Interest *up to 18 th of November

10 INR Futures Competitive Landscape 40.00% INR/USD Value Market Share Comparison 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Jan-2015 Feb-2015 Mar-2015 Apr-2015 May-2015 Jun-2015 Jul-2015 Aug-2015 Sep-2015 Oct-2015 Nov-2015 Dec-2015 Jan-2016 Feb-2016 Mar-2016 Apr-2016 May-2016 Jun-2016 Jul-2016 Aug-2016 Sep-2016 Oct-2016 DGCX NSE SGX BSE 10

11 DGCX Members 11

12 Dubai Commodity Clearing Corporation 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. 12

13 About DCCC 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 DCCC 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 13

14 DCCC statistics at a glance 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

15 Risk Management Framework Novation through DCCC Settlement Guarantee Framework Upfront IM / SPAN based RMS 4 fully networked Clearing Banks & SWIFT Member DGCX Markets Real time MTM and Monitoring of Risks Protected Payment System T+1 Settlement of MTM P&L Intra-day top up Margins when required 15

16 Regulatory Structure 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 16

17 DGCX Technology - EOS 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. 17

18 DGCX Technology 18

19 Our Connectivity Solutions 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. DGCX offers a first in class Tier 3 Data Centre with colocation 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. 19

20 DGCX Technology - Network 20

21 Our Independent Software Vendors 21

22 Contact Us Tel: Website: Sales & Relationship Management: Products: Membership: Clearing: Support: Compliance: 22