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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.
i
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