 DGCX Products
Futures
A futures contract is an agreement between two parties to buy or sell a specified quantity and quality of an asset at a certain time in the future, at a price agreed upon at the time of entering into the contract on the futures exchange. DGCX trades US$ denominated standardized futures contracts. All contracts are developed in consultation with the relevant trade industry they are associated with, and members of DGCX.
Gold
 Dubai has an impressive history and established trade in the precious metals industries. DGCX launched its trading operations with a gold futures contract. The gold contract unit will be for 1 kilogram of gold (0.995 fineness) deliverable at DGCX approved vaults in the United Arab Emirates (UAE).
Silver
Dubai remains a crucial link in the international silver trade and the silver contract was the second contract launched on DGCX. The silver contract will be for 1,000 troy ounces of silver (0.999 fineness) and deliverable at DGCX approved vaults in the UAE.
Currency Majors
In a landmark development, DGCX introduced the world's first exchange traded Indian Rupee currency futures contract on June 7, 2007 in addition to 3 major currencies already listed - Euro-Dollar, Yen-Dollar and Sterling-Dollar. All DGCX Currency futures contracts are physically deliverable contracts which have now established DGCX as the pioneer commodities exchange offering trading in precious metals and currencies and energy futures on the same platform in the Middle East.
Currency futures contracts provide an edge to its market participants by providing the unique advantage to trade and hedge commodity as well as currencies risk on the same exchange.
This pioneering initiative is expected to generate interest among corporate treasuries, importers, exporters, inter-bank dealers and retail participants in the region, who were traditionally confined to banks and other large financial institutions for their foreign exchange market requirements. DGCX currency futures product will be an opportunity for private investors and an important risk management tool for foreign currency market participants in the region.
Fuel Oil
The Arabian Gulf has tremendous liquidity in fuel oil in terms of both freely traded import/export volumes and bunkers traded in Fujairah, the world's second largest bunker market (12 million tonnes per annum). The volumes traded in the Gulf markets are forecast to continue growing substantially over the next decade.
Indian Rupee
In 2007 the exchange launched the world's first Indian Rupee contract versus the US$. This is the first time Rupee risk can be traded and hedged on an international electronic platform. The contracts, settled against the RBI fixing rate and along the usual IMM quarterly dates, have two near one month contracts.
Steel
The steel industry in the Middle East has witnessed significant growth in the recent years, and approximately 50 million tonnes of steel is traded and consumed in the region annually. Sitting at the crossroads of the world's two dominant long product steel trade flows - from China westward and from the Black Sea eastward - the region's burgeoning construction sector, fueled by the domestic investment of hydrocarbon income, the regional population growth, and commercial enterprise, has prompted the UAE to being the single largest rebar import location along those trade flows, and the Middle East as the largest free-market billet-consuming region in the world. Determining the UAE's rebar price is of strategic importance to not just on a regional basis, but to a steel community stretching from China to the Channel Isles, and of increasing importance to rebar buyers and scrap / billet exporters in the Americas
On October 29th 2007 DGCX launched the world first internationally tradable steel futures contracts. This first product offering was for Rebar. The adjacent pdf provides an overview.
Plastics
Futures contracts on Plastics (Polypropylene and Linear Low Density Polyethylene).
The launch date for Plastics futures has been postponed until further notice.
Press Release: DGCX to postpone Plastics Futures launch
WTI Light Sweet Crude Oil
DGCX announced the launch of West Texas Intermediate Light Sweet Crude (DWTI) Oil futures contract on Tuesday May 20th which will be available for trading from Tuesday 27th May.
DGCX West Texas Intermediate Light Sweet Crude Oil Futures (DWTI) makes one of the world's most significant crude oil benchmarks available to both regional and international market participants, allowing them to benefit from trading and clearing transactions under the UAE regulatory and taxation regimes.
The DWTI contract is sized at 1,000 barrels, with the contract price quoted in U.S. dollars and cents per barrel. The minimum price fluctuation will be one cent per barrel, equivalent to a tick value of $10.00.
Light, sweet crudes are preferred by refiners because of their low sulfur content and relatively high yields of high-value products such as gasoline, diesel fuel, heating oil, and jet fuel. Crude oil is one of the world's most widely used commodities and is amongst the most liquid futures contract. Crude oil refers to petroleum in its raw form. Crude oil becomes useful after refining, which produces numerous oil-based component products, including petroleum gas, diesel, lubricants, heating oil, lubricating oils, aviation gasoline and asphalt among others. WTI, also known as Texas Light Sweet is a type of light crude, lighter and sweeter than Brent Crude. Its properties and production site makes it ideal for being refined in the United States, mostly in the Midwest and Gulf Coast regions.
A fee waiver will be in place for the DWTI Crude futures contract from launch date the 27th May through to 26th August 2008.
Brent Crude Oil
DGCX announced the launch of DGCX Brent Crude Oil (DBRC) futures contract on Tuesday May 20th which will be available for trading from Tuesday 27th May.
DGCX Brent Crude Oil Futures Contract (DBRC) makes one of the world's most significant crude oil benchmarks available to both regional and international market participants, allowing them to benefit from trading and clearing transactions under the UAE regulatory and taxation regimes.
The DBRC contract is sized at 1,000 barrels, with the contract price quoted in U.S. dollars and cents per barrel. The minimum price fluctuation will be one cent per barrel, equivalent to a tick value of $10.00.
Crude oil is one of the world's most widely used commodities and is amongst the most liquid futures contract. Crude oil refers to petroleum in its raw form. Crude oil becomes useful after refining, which produces numerous oil-based component products, including petroleum gas, diesel, lubricants, heating oil, lubricating oils, aviation gasoline and asphalt among others. Brent crude oil is named after the Brent oil field in the North Sea, off the coast of Britain.
A fee waiver will be in place for the DBRC Crude futures contract from launch date the 27th May through to 26th August 2008.
Other Products
DGCX has plans to provide additional contracts for various other commodities. The necessary market research on these commodities is underway. |
