DGCKX PROUCTS

Forex CFD's On Futures


DGCX will trade US $ denominated standardized futures contracts and options on futures contracts on a number of commodities. Futures will be ‘classic’ futures, with designated delivery months. Options on futures contracts will also be traded.

Gold

Dubai has an impressive history and established trade in the precious metals industries. DGCX will launch its trading operations with a gold futures contract to be followed by a gold options contract. The contract specifications have been developed in consultation with the precious metals trade. 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 second contract to be launched on DGCX will be a silver futures contract, to be followed by a silver options contract. 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

DGCX launched Currency futures contracts in 3 major currencies – Euro, Japanese Yen and Pound Sterling against US Dollar with contracts maturing in March, June, September and December each year. These are physically deliverable contracts which have now established DGCX as the only commodities exchange offering trading in precious metals and currencies on the same platform in the Middle East. These contracts are traded on DGCX’s fully electronic trading platform, giving market participants the ability to hedge their currency risks immediately in response to events in global markets. It also presents an unique opportunity to its members to hedge currency risk on precious metals on the same platform.

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.

Steel

With the unprecedented construction boom in the Middle East, the region has emerged as a major consuming market for steel. Dubai is amongst the largest consumer markets for steel worldwide and with current growth plans; demand across the region is set to increase even further.

Plastics

DGCX will launch four regional plastics futures contracts based on Polypropylene and Polyethylene (HDPE - LDPE - LLDPE - PP) These futures contracts will provide producers, traders, converters and other industry participants with a toll to hedge price risk. The launch is seen as key to meeting the demand for a transparent pricing system and includes contracts specific to the plastics sector in the Middle East as well as Asia.

The Middle East has become the focus of the global petrochemicals industry, with the GCC being the largest producer and exporter of petrochemicals and plastics. Over the next one to five years the region is forecast to see huge volumes coming on line and it is becoming increasingly the preferred location for international polymer production and conversion. The huge growth potential of the regional downstream plastic industry can be seen now and it is predicted that this rate of growth will continue to increase with many global converters relocating to the region.

Freight Rates

Ocean freight rates, both for bulk cargos and containers, have fluctuated dramatically in recent years. These have significant implications for those engaged in international trade, as the very rationale for certain trade transactions can be reversed by subsequent movements in freight rates.

Cotton

Cotton has one of the longest histories of futures trading going way back into the nineteenth century. Dubai is strategically located to tap into regional raw cotton trade flows, with significant production in CIS States, North and West Africa and significant demand from India, Pakistan and the Far East.

Other products

DGCX has plans to provide additional contracts for various other commodities. The necessary market research on these commodities is underway.