UAE. Dubai Gold and Commodities Exchange (DGCX) today launched the DGCX Academy, an educational initiative aimed at extending the benefits of derivatives trading to the wider business and investment community in the Middle East.
The first such initiative in the region, the Academy seeks to empower the community with the knowledge and skills needed to use derivatives as effective investment and risk management tools.
The DGCX Academy will offer seminars, webinars and certification courses aimed at two different sets of audiences - novice traders and retail investors seeking to further leverage the investment potential of derivatives; and businesses, corporates and institutions looking for effective hedging tools to manage currency and commodity risk.
Commenting on the initiative, Samir Shah, Chief Business Officer of DGCX said: “In the current economic environment, we believe derivatives can play a vital role in supporting business stability in the regional market. At a time when traditional asset classes like equity and real estate are under pressure, derivatives provide a very attractive alternative investment opportunity.
"At the same time, derivatives provide vital hedging tools for managing the high levels of commodity price and exchange rate risk prevalent today. DGCX is committed to contribute towards strengthening the region’s financial system by raising awareness of derivatives as means for market players to diversify investments and manage risk.”
The DGCX Academy will offer educational courses for diverse needs and experience levels. These include a Beginner’s Module that introduces the fundamentals of financial markets and derivatives trading; and an Advanced Module that helps seasoned professionals enhance their trading strategies and skills.
Speaking about the objectives of the Academy, Shah said: “There is a wide spectrum of regional businesses in sectors ranging from commodities and metals to textiles and construction that can raise their business profitability by hedging currency and commodity risk using derivatives. Unfortunately, there is low awareness of the full potential of derivatives as hedging instruments.
"The Academy is a key educational platform for participants to enhance their understanding of how derivatives trading can support their businesses. In the months ahead, DGCX will be reaching out to various business communities in the region to drive awareness of such opportunities.”
Another key objective of the Academy is to widen the pool of trading expertise and promote greater sharing of trading knowledge. In addition to educational programmes, the DGCX Academy will publish study, concept and research-based papers’. The Academy will conduct joint seminars for specific industry groups and communities as part of its efforts to extend the benefits of trading on DGCX to a wider audience.
Other initiatives will include free weekly seminars and webinars, certification courses for various asset classes and financial instruments, customized training sessions for corporates, and customized research. A schedule of the Academy’s seminars will be posted on the DGCX website www.dgcx.ae.
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.