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“FX Futures Trading at DGCX” Samir Shah, Chief Business Officer.

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Presentation on theme: "“FX Futures Trading at DGCX” Samir Shah, Chief Business Officer."— Presentation transcript:

1 “FX Futures Trading at DGCX” Samir Shah, Chief Business Officer

2 Initiatives Regulated Clearing house About DGCX DCCC 2

3 DGCX Growth Volume Products Members Region’s 1st and largest derivatives exchange Volume is up 120% Y-O-Y CAGR (6 years): 58% 252 members and 64 clearing members Metals, Energy & Currencies 12.2 Million Contracts, valued at US$ 560 billion 3

4 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 4 4

5 The Global FX Market Volatility increased 20% growth on 2007 volumes US $4 trillion is the daily turnover 5 5

6 6 Are we competitive? 6 US¢ 0.01 – 0.02, LOCAL US¢ 0.01 – 0.02, CME US¢ 0.01 – 0.03, DGCX

7 7 Are we competitive? 7 US¢ 0.01 – 0.02, LOCAL US¢ 0.01 – 0.02, CME US¢ 0.01 – 0.03, DGCX

8 8 DGCX community 8 retailretail banksbanks commercial institutionscommercial institutions funds and asset Managersfunds and asset Managers HNWIHNWI private investors retailretail banksbanks commercial institutionscommercial institutions funds and asset Managersfunds and asset Managers HNWIHNWI private investors

9 DGCX FX - perfect hedge 9

10 The 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 10

11 DGCX Indian Rupee FuturesNon 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 market - Example 11

12 DGCX & Emerging Markets 12 DGCX Niche Products (Indian Rupee) Available Access Global Product (Gold, Silver, Copper, WTI, etc..) DGCX Platform

13 Dubai Commodity Clearing Corporation Real-time position monitoring Zero defaults since inception Settlement Guarantee Fund DGCX futures contracts are cleared via DCCC, removing counterparty credit risk DCCC 13

14 DGCX Market Broker Direct DGCX Direct DGCX Direct ISV Direct ISV Market Access DGCX Prices DGCX Prices 14

15 Broker Membership Introducing Membership Structure Membership Trading Membership 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 15


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