Unique offerings
In 2014, DGCX made a big push to expand its emerging market currency and index-based products. We also introduced unique products such as the Plastics Futures. Early in the year, DGCX listed the region's first ever Plastics contract - strategically timing it with the launch of Dalian Commodity Exchange's polypropylene futures contract. In this market where more than 50 million tonnes of plastics is produced a year - the potential for the DGCX Plastics contract is immense.
We re-introduced the Indian Rupee Option contract for trading, launched two MSCI contracts, and listed two new pairs of Mini Indian Rupee Cross Currency Futures. The Exchange ended 2014 on a high note, launching three new Emerging Market currencies - Russian Ruble, Korean Won and South African Rand.
With the launch of all the above contracts, our focus was to develop our product portfolio to provide the diversity which is necessary to service both institutional and retail customers. We will continue to focus on growing the portfolio and serving a wide range of customers with our new products.
For 2015, we have a strong line-up of products. The highlight will be the spot gold contract which is currently in the near-to-final stages of launch. Spot gold is an eagerly awaited GCC focused contract that will mark a major milestone in the history of the Exchange. In addition, we are planning to launch more gold, currency, equity and soft commodity related products. More to follow on all of these!
Global Competitiveness
I'm pleased to say that DGCX's fruitful partnership with Cinnober has resulted in an advanced technology infrastructure of global standards and one that supports the Exchange's aggressive business development and growth plans. With the latest upgrade in technology, DGCX is able to offer its member community additional functionalities and enhanced efficiencies. One of the key features of the latest upgrade is that DGCX can now offer trading, clearing and settlements all in different currencies, including UAE Dirhams. With a cutting-edge technology, DGCX's global competitiveness has been elevated to a whole new level!
Growing community
Our member base had been growing steadily. Several new members from UAE, Asia and Europe joined us - expanding the DGCX community and pushing it to greater heights. Some of the recent members include China's Nanhua Futures, Singapore's UOB Bullion & Futures and Abu Dhabi's Mena Corp.
We also signed an MoU with China Financial Futures Exchange(CFFEX) and look forward to closely working with them on areas of new product development, risk management, business strategy and market surveillance.
Major steps underway
As you know, the derivatives industry is in the midst of an intense regulatory shift towards centrally cleared derivatives contracts via Central Counterparties that aim to minimize the systemic risk of OTC derivatives. The Dubai Commodities Clearing Corporation (DCCC) as the only Commodity Derivatives CCP in the region supports this shift by enabling DGCX to provide investors with centrally-cleared products that are a more secure alternative to OTC derivatives.
Last year, we introduced new settlement and collateral deposit facilities in UAE Dirhams via the DCCC which means that the clearing members will not only be able to settle their transactions in UAE Dirhams (AED) in addition to US Dollars but also place collateral deposits in AED.
I am confident that these new facilities will generate significant additional trading and settlementefficiencies for our members and further boost liquidity in the DGCX marketplace. DCCC has also developed and launched capital efficiency tools to make engagement with DGCX more cost effective and competitive.
Going forward, our endeavor is to establish DCCC as the 'CCP of choice' within the GCC. We have been working with regulatory bodies to make sure that the DCCC is complaint with global standards.
Additionally, we have already applied to European Securities and Markets Authority (ESMA) for TC-CCP (third country central country party) recognition, which will allow European banks and institutions to take exposure on DGCX markets and the UAE.
Industry recognition
The greatest accolades are those we win from our industry peers. DGCX was - for the second year in a row - recognized as the Exchange of the Year 2014 in the Middle East and Australia by Futures & Options World. As you'd know this is no small feat for a young Exchange like DGCX.
On that note - on behalf of the entire DGCX management - I would like to thank each one of you for your hard work and support, without which all these accomplishments wouldn't have been possible.
Here is wishing you all a successful 2015!
Gaurang Desai
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