Prior to 2005, Dubai lacked a commodities exchange where traders could hedge their exposure to commodity and currency prices. Dubai’s reputation as a physical trading hub for gold and other commodities made establishing a derivatives trading marketplace a logical step in enhancing the local economy. In 2005, the Dubai Gold and Commodities Exchange (DGCX) was launched as the Middle East’s first derivatives exchange. This move was strategic, as it strengthened the commodities and forex market and diversified investment opportunities for regional investors. DGCX, a subsidiary of Dubai Multi Commodities Centre (DMCC), aims to enhance commodity trade flows through the Emirate by providing physical, market, and financial infrastructure and services. Over the years, the Exchange has pioneered several futures and options contracts in metals, energy, and currency sectors, providing new opportunities for investors and transforming the region’s derivatives market.

Advantages Of Trading With DGCX

Trading on the DGCX offers various advantages including,

Reduced counterparty risk through the Dubai Commodities Clearing Corporation (DCCC), a subsidiary wholly owned by DGCX, and a straightforward fee structure with a single fee for all participants.

Regional and international liquidity pools are available, as well as robust risk management and surveillance systems.

Trading hours are uninterrupted from 7:00 am to 11:30 pm (GMT +4), making it accessible for traders in different time zones. Moreover, DGCX is regulated by the Securities & Commodities Authority (SCA).

Located between the time zones of Europe and the Far East, the UAE is an ideal location for trading, and DGCX offers various products from the precious metal, base metal, energy, and currency sectors.

Access to Markets in the East

Dubai’s unique location, situated between the Far East and Europe, has long made it a highly sought-after center for reaching larger markets beyond it. Leveraging this strategic advantage, DGCX provides extended trading hours to traders globally, integrating regional and international trading. By serving as a link between the Far East and Europe, DGCX is actively contributing to the seamless flow of the global trading cycle, especially during the time between the closing of Far East markets and the opening of European markets.

In line with its commitment to offer greater trading opportunities, DGCX recently expanded its trading hours by 1.5 hours, providing traders with a 30-minute window before the opening of derivatives exchanges in South Asia. This allows traders to take positions based on overnight indicators, putting them ahead of the curve and enhancing their potential for success.

Introducing Advanced Trading Technology

In March 2013, DGCX activated its trading platform, the EOS Trader Platform, after forming a strategic partnership with Cinnober. This new technology infrastructure will bring greater efficiency and liquidity to the exchange, enabling the launch of new products.

With this platform, DGCX has the capability to offer contracts in various currencies, including UAE dirhams. Additionally, it provides multi-currency settlement facilities and 24-hour market support. The advanced collateral valuation facility of the platform also allows Members to use different types of collateral, such as government bonds and Dubai Gold Receipts, in addition to cash and bank guarantees. The platform also opens up new revenue opportunities for DGCX by allowing them to extend clearinghouse facilities to other exchanges and institutions.

Introducing the EOS Platform

DGCX’s advanced technology platform, EOS, is designed to offer contracts in multiple currencies, including the UAE dirham. This cutting-edge platform will enable DCCC, the clearing corporation of DGCX, to provide multi-currency settlement facilities in the future.

With its state-of-the-art matching engine, EOS caters to the needs of high-frequency traders who require ultra-low latency platforms for effective and efficient trading.

The core trading and clearing applications are built on Cinnober’s TRADExpress and Real Time Clearing platform, as well as Scila Surveillance System, a leading market surveillance system. Together, these technologies provide a multi-asset solution that offers market-leading functionality, speed, and throughput capacity.

DGCX Awards

FOW Most Innovative New Contract in the Currency Category 2016 Awards Asia

Regional Exchange of the Year 2016’ by Global Investor on the 26th October 2016

FOW Exchange of the Year 2014 (MEA)

FOW Emerging Exchange of the Year 2014

FOW World Second-Fastest Growing Exchange 2012

The “Best Global Commodities Exchange 2013” Award by MENAFX

JFEX Best Middle East FX Exchange 2013 FOW

Contract of the Year 2012 – INR Options JFEX Best Middle East FX Exchange 2012

Global Banking & Finance Review – the world’s ‘Best Global Commodities Exchange 2012’

FOW First Relationship Management & fee structure 2008

FOW Fourth Overall Exchange 2008