Dubai Gold & Commodities Exchange set for further growth with new technology from Cinnober
Speeds up business development and improves client accessibility
9 May 2018: The Dubai Gold & Commodities Exchange (DGCX), and its 100% fully owned subsidiary the Dubai Commodities Clearing Corporation (DCCC), the leading derivatives exchange and clearing house in the Middle East, has upgraded its integrated trading and clearing solution from Cinnober to the latest version of the TRADExpress platform. The purpose was to enhance and speed up business development capabilities even further, and to benefit from a more refined trade and market data protocol, leading to improved bandwidth usage. As the new version went live, DGCX launched the region’s first, and world’s only exchange-traded Shari’ah Compliant Spot Gold contract (DGSG).
Having received recognition from ESMA and ADGM in 2017, the DGCX is now ready to connect third party marketplaces to its Clearing House, the DCCC, opening up for further expansion.
“With this upgrade we’re benefiting from cutting-edge exchange and clearing technology and preparing for further growth,” says Les Male, CEO of DGCX. “The launch was smooth, operations have been enhanced, and we’ve seen great results for member accessiblity and connectivity, as well as highly encouraging feedback.”
The bandwidth usage has been reduced by an average of 45% with the upgrade, giving DGCX members easier, more reliable, and cheaper access to the market.
“DGCX has always been very agile and responsive to its market, continuously launching new innovative products to serve client needs,” says Veronica Augustsson, CEO of Cinnober. “They’re an excellent example that demonstrates the benefits of an integrated solution, both in terms of the ease of adding new asset classes and instruments, as well as efficient risk management with the ability to act immediately on real-time information.”
The upgraded solution successfully went live on March 23, and operations have proven stable, continuing its track record of complete viability and availability. DGCX and Cinnober’s partnership dates back to 2012, and in 2013 they went live with a complete trading and clearing infrastructure from Cinnober, based on its proven TRADExpress software.
Products traded on DGCX include derivatives on Currencies, Metals, Hydrocarbons, and Equities. DGCX operate with a multi-asset, multi-currency technical solution for all its products. The clearing system is integrated with the trading system and monitors risk pre-trade as well as in real time, enabling efficient utilization of the market participants’ collateral. This solution allows for the easy addition of new products with a short time-to-market. Since the initial launch, DGCX has launched many new contracts without any dependency on Cinnober.
For further information or discussion, please contact:
Head of Corporate Communications
Cinnober Financial Technology
Tel. +46-73 403 12 39
About Cinnober Financial Technology
Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance. Cinnober’s customers include the Australian Securities Exchange, B3, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE and the Stock Exchange of Thailand. Using its extensive experience in financial technology, Cinnober has broadened its reach through the establishment of highly specialized and competitive subsidiaries. Today, three such subsidiaries exist within trade reporting and transparency, post-trade and client clearing and trade surveillance and analytics. For additional information, please visit www.cinnober.com.
Cinnober’s shares are traded on the Nasdaq First North exchange and the company’s Certified Advisor is Avanza. To help the market to assess the value of the deals won by Cinnober, the following definitions have been established. A major deal is one for which the order value over a period of five years is estimated to exceed SEK 100 million. A smaller deal is one for which the order value over a period of five years is estimated to be less than SEK 30 million. A medium-sized deal is one for which the order value over a period of five years is estimated to be in between that of a smaller deal and a major one. In writing moment, the signed agreement mentioned above is considered a medium-sized deal from this perspective.
Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 200 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities and currency sectors. DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae
DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognized as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 80 clearers from across the globe. For more information: www.dccc.co.ae