“FX Futures Trading at DGCX”Samir Shah, Chief Business Officer
Initiatives
Regulated
Clearing house
About DGCX
DCCC
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DGCX
Growth
Volume
Products
Members
Region’s 1st and largest derivatives exchange
Volume is up 120% Y-O-YCAGR (6 years): 58%
252 members and 64 clearing members
Metals, Energy & Currencies12.2 Million Contracts, valued at US$ 560 billion
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The DGCX Advantage
Low transaction fee structure
Liquid markets and tight spreads
Unique Indian Rupee Futures
Ideal location and trading hours
Key economic indicators on one Exchange
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The Global FX MarketThe Global FX Market
Volatility increased
20% growth on 2007 volumes
US $4 trillion is the daily turnover
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Are we competitive?6
US¢ 0.01 – 0.02, LOCAL
US¢ 0.01 – 0.02, CME
US¢ 0.01 – 0.03, DGCX
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Are we competitive?7
US¢ 0.01 – 0.02, LOCAL
US¢ 0.01 – 0.02, CME
US¢ 0.01 – 0.03, DGCX
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DGCX communityDGCX community8
retailretailretailretail
banksbanksbanksbanks
commercial institutionscommercial institutionscommercial institutionscommercial institutions
funds and asset Managersfunds and asset Managersfunds and asset Managersfunds and asset Managers
HNWIHNWIHNWIHNWI
private investorsprivate investorsprivate investorsprivate investors
retailretailretailretail
banksbanksbanksbanks
commercial institutionscommercial institutionscommercial institutionscommercial institutions
funds and asset Managersfunds and asset Managersfunds and asset Managersfunds and asset Managers
HNWIHNWIHNWIHNWI
private investorsprivate investorsprivate investorsprivate investors
DGCX FX - perfect hedgeDGCX FX - perfect hedge9
The FX FuturesThe FX Futures
Growth in FX trading
Counterparty & operational
risk
Volatility
DGCX has seen 203% growth in currency futures volume year to date
DGCX FX
Futures
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DGCX Indian Rupee Futures Non Deliverable Forward
Reduced Counterparty Risk. DCCC offers settlement guarantee fund and zero defaults
Trades are transacted bi-laterally with higher default risk
One DGCX contract (DINR): R 2 million (approx. US $45k)
Minimum contract size: US $100k
US $1 million = 23 lots (contracts) on DGCX @ US $45k notional value per contract
US $1 million notional value
•Typical spread on DINR after 5pm IST: 1 DGCX pips which is equivalent to 0.75 paisa•For notional value US $1 million (23 contracts), the total entry and exit costs are: US $460
•Typical spread in NDF market after 5pm IST: 4 to 6 paisa mark up and mark down which equates to total 8 paisa•For notional value US $1 million, the approx. total entry and exit costs are: US $1,739
On DGCX, the margin is c. 2% In the NDF market, the margin is c. 5%
DGCX Indian Rupee Futures are available to trade electronically
The NDF market is predominantly traded over the phone via a broker
DGCX vs. NDF marketDGCX vs. NDF market - - ExampleExample
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DGCX & Emerging MarketsDGCX & Emerging Markets1212
Dubai Commodity Clearing Dubai Commodity Clearing Corporation Corporation
Real-time position
monitoring
Zero defaults
since inception
Settlement Guarantee
Fund
DGCX futures contracts are cleared via DCCC, removing counterparty credit risk
DCCC
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DGCX Market
BrokerBroker
DirectDGCXDirectDGCX
DirectISV
DirectISV
Market AccessMarket Access
DGCXPricesDGCXPrices
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Broker Membership
Introducing
Membership StructureMembership Structure
Membership
TradingMembership
Broker
DGCX membership is open to corporations or partnerships Members typically located in the UAE; can be located outside from some
jurisdictions
DGCX membership is open to corporations or partnerships Members typically located in the UAE; can be located outside from some
jurisdictions
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