Dubai Gold and Commodities Exchange extends trading hours
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Thu May 31, 2012 8:23 pm

UAE. The Dubai Gold and Commodities Exchange (DGCX) today announced an extension of its trading hours. From the 4th June, 2012, the Exchange will open from 07:00 (UAE time), 1 hour and 30 minutes earlier than its previous opening time.

The extended trading time will provide DGCX participants with a 30 minute window before the exchange traded currency derivatives markets open in India.

Commodity and currency futures prices are tightly linked to the prices of their underlying instruments, with futures prices highly sensitive to price movements of the underlying. This makes them much more suitable for ‘momentum trading’ than equities.

The 30 minute window between DGCX opening and the Exchange traded currency derivatives market opening in India will allow participants on the DGCX an opportunity to take positions based on overnight indicators, putting them ahead of the momentum curve.

Commenting on the initiative, Gary Anderson, Chief Executive Officer, DGCX, said: “DGCX has a strong track record in contract innovation and the Exchange remains committed to further enhancing trading opportunities in commodity and currency derivatives in the region. The launch of a new product or contract enhancement on DGCX is based on both market conditions and feedback from DGCX Members and market participants. The extension of our trading hours is the result of this interaction and feedback process. ”

The extended opening hours are predicted to be of greatest interest to participants trading in INR Futures and will enhance DGCX’s leading proposition on this contract. In 2007, DGCX introduced the world’s first INR Futures contract. Over the last two years the growth of the contract has been exceptional, recording an annual volume of 3,184,979 contracts in 2011, a 563% growth from 2010.

Its success has been primarily driven by international interest in India’s economy and currency. In addition, India’s rapidly growing trade flows, increased cross border investments and the fluctuation in exchange rates, have created a corresponding requirement to hedge risk.

Increasing trade between India and the Middle East is also a key factor behind the contract’s success, benefiting a wide number of participants including traders, speculators, importers, exporters, hedgers and local businesses.


About DGCX: Established in 2005, DGCX is the region’s first derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives. 

DGCX is a Dubai Multi Commodities Centre (Dubai Government) initiative in partnership with Financial Technologies (India) Limited and Multi Commodity Exchange of India Limited (MCX). It is an electronic commodity and currency derivatives exchange with 230 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. 

For more information: www.dgcx.ae

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: June 23, 2016
SAUDI ARABIA. The NTP aims to boost non-oil revenue by 2020 through more than 500 initiatives including the implementation of new taxes and increasing government fees and taxes on "harmful products."
date:Posted: June 22, 2016
INTERNATIONAL. 27% believe digitalization is the greatest disruptor to their core business.
date:Posted: June 22, 2016
UAE. A new generation of young, highly motivated and mostly well-educated men and women is ready to take over leadership of their family businesses, according to new Deloitte report.
SAUDI ARABIA. The NTP aims to boost non-oil revenue by 2020 through more than 500 initiatives including the implementation of new taxes and increasing government fees and taxes on "harmful products."
dhgate