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Dubai Gold & Commodities Exchange (DGCX) has emerged as a leading newcomer in the international derivatives space in 2008, spurred by strategic product launches, record trade between Asia and the Middle East and growing interest in commodities.
Addressing leading participants from the energy industry at a conference in Singapore, Nishat Bandali, Chief Marketing Officer, DGCX, said that “Increased commodity trade in emerging Asian economies coupled with a global shift in capital to commodities, has fuelled overall demand for commodity derivatives. In line with this trend, DGCX strengthened its product portfolio in 2008, providing market participants in Asia, the Middle East and beyond with local arbitrage tools for a wider range of commodities,” he said.
DGCX launched the region’s first WTI and Brent crude oil futures contracts this year, offering the large liquidity pools of Asia and the Middle East the opportunity to access one of the world’s most strategic commodities without the operational complexities and cost inefficiencies of having to trade via the US or UK, Bandali added.
In a bid to expand its reach and offer Singapore-based market participants direct access to its growing portfolio of commodity and currency contracts, DGCX secured approval from the Monetary Authority of Singapore and became a Recognized Market Operator (RMO) earlier this year.
Highlighting 2008 as a year of success for DGCX, Bandali said year-on-year volumes on the Exchange grew 54%, with total 2007 volume surpassed in the first eight months of this year. The Exchange was also recently ranked first for relationship management and fee structure and fourth overall among leading international exchanges by the Future & Options Week buy-side survey.
