Dubai
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Developments in the Middle East Bullion markets & Its Impact on the Indian Bullion Markets
Framroze Pochara Chief Executive Officer DGCX
24 August 2005
AGENDA
• Dubai Metals & Commodities Centre • DMCC Indian Members • Dubai Gold Trade • Dubai Gold Refining • Dubai Good Delivery • Dubai Gold & Commodities Exchange
Dubai Metals & Commodities Centre •
Established in 2002 as a strategic initiative of the Dubai Government
•
A dynamic free zone authority
•
3 sectors: Gold & precious metals, Commodities, and Diamonds & coloured stones
•
Provides physical & market infrastructure – Physical infrastructure • Gold Refineries • Manufacturing Complex • 3 towers – Market infrastructure • Dubai Commodity Receipt • Dubai Gold Receipt • Dubai Good Delivery • DMCC Gold Sukuk • Dubai Tea Trading Centre • Dubai Diamond Exchange & Kimberly Process • Dubai Gold & Commodities Exchange
•
‘A’ Rating by Standard&Poors
Indian DMCC Registered Companies
• Total: 177 companies • Breakdown by segment • Diamond: • Gold: • Commodities:
100 54 23
India’s Part in Dubai’s Total Gold Trade 600
12,000 Imports Exports Total Value
10,000
400
8,000
300
6,000
200
4,000
100
2,000
-
0 2000
2001
2002 Year
2003
2004
Total Value (US$ Millions)
Total Volume (tons)
500
India Imports/Exports: 256 tons
Dubai Gold Refining • 2 fully operational gold refineries, 2 more on stream in 2005/6 • Volume of gold produced 1st half 2005: 137 tons • Scrap coming from India, refined in Dubai
Dubai Good Delivery • Category 1 launched in February 2005 • Approved Brands • • • • • • •
Rand Refinery, South Africa Valcambi, Switzerland Metalor Technologies, Switzerland AGR Matthey, Australia Johnson Matthey Hong Kong Argor-Heraeus, Switzerland PAMP, Switzerland
• Category 2 launched August 2005
Dubai Gold & Commodities Exchange • State-of-the-art electronic exchange • Trading access from anywhere in the world • Trading on all 7 days of the week • Extended trading hours from 10:00 am to 11:00 pm • Trading hours to overlap with markets in the Far East, Europe and US • US Dollar denominated contracts • Strength of the partners - DMCC, FTIL, MCX • Dubai’s strategic location as a global trading hub
Dubai Gold & Commodities Exchange • Trading commences – November 2005 • DGCX Membership – 1st Tranche - 233 applications from across the globe – Geographic distribution of applicants • Majority GCC & India • London, Canada, Egypt, Turkey, Pakistan
• Clearing Banks appointed • HSBC • National Bank of Dubai
DGCX PRODUCTS Futures and Options on • • • • • • •
Gold Silver Steel Marine Fuel Oil Cotton Freight Rates Others as per demands of the market
DGCX Gold Futures Contract Specs Symbol
DG
Contract Size
32 oz (1 Kilo)
Price Quote
US$ per oz.
Minimum Tick Size
US$ 0.10
Price Movement Limit
US$ 20
Delivery Unit
1 Kilo
Deliverable Quality
0.995 Gold
Delivery Point
Physical delivery at approved UAE Vaults
Contract Months
Feb, Apr, Jun, Aug, Oct, Dec
Last Trading Day
Fifth business day of the maturing delivery month.
Delivery Day
The first business day of the delivery month through the sixth business day of the delivery month.
Last Delivery Day
The sixth business day of the delivery month.
Initial Margin Requirements
US$ 500 per contract
Trading Days
Initially: Monday through Friday Later : Monday through Sunday
Trading Hours
M/F: 10:00 - 23:30 (1 hour earlier in summer) Sat: 10:00 - 13:00 Sun: 17:00 - 21:00
DGCX Silver Futures Contract Specs Symbol
DS
Contract Size
1,000 oz
Price Quote
US$ per oz.
Minimum Tick Size
US$ 0.005
Price Movement Limit
US$ 0.50
Delivery Unit
30 Kilo
Deliverable Quality
0.999 Silver
Delivery Point
Physical delivery at approved UAE Vaults
Contract Months
Jan, Mar, May, Jul, Sep, Nov, Dec
Last Trading Day
Fifth business day of the maturing delivery month.
Delivery Day
The first day of the delivery month through the sixth business day of the delivery month.
Last Delivery Day
The sixth business day of the delivery month.
Initial Margin Requirements
US$ 450 per contract
Trading Days
Monday through Sunday
Trading Hours
M/F: 10:00 - 23:30 (1 hour earlier in summer) Sa: 10:00 - 13:00 Su: 17:00 - 21:00
Thank You
