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Proposed change to OQD final day daily settlement window length
May 12, 2010--This Consultation Paper has been issued to provide market participants with an opportunity to comment on proposed changes to the final settlement period.
Application of the Consultation Paper
Consultation Paper 10-003 is directed primarily at DME Members/Customers and/or prospective DME Members/Customers. DME also welcomes any comments from any organisation which represents groups of such users or prospective users.
Proposed change
In response to feedback from market participants, the DME is considering the reduction of the length of the final day daily OQD settlement window, from thirty (30) minutes to five (5) minutes, to put it in line with non-final day daily settlement procedures.
Please note: All references to the time are expressed on a 24-hour clock and refer to the local times in Dubai "DST" and Singapore "SGT".
Currently, the final trading day of the month has a thirty (30) minute daily settlement window from 12:00 – 12:30 DST (16:00 – 16:30 SGT) as opposed to all other trading days which have a five (5) minute daily settlement window from 12:25 – 12:30 DST (16:25 – 16:30 SGT). The proposed change would lead to the daily OQD settlement window for all trading days being five (5) minutes long, from 12:25 – 12:30 DST (16:25 – 16:30 SGT).
How to provide comments
The deadline for providing comments on the proposals in this Consultation Paper is twelve (12) calendar days from the date of this Consultation Paper. For the avoidance of doubt, all comments must be received by the Exchange on or before 24th May 2010 at 18:00 DST (22:00 SGT). All comments on the proposed changes should be addressed to:
Mohammed Hussein Ismail,
Director Strategy & Business Development
Dubai Mercantile Exchange
P.O. Box 66500, Dubai, United Arab Emirates
mohammed.ismail@dubaimerc.com
Currency futures drive 9% growth in DGCX April volume
Total April volume reached 107,641 contracts, a rise of 9% on last year
YTD volume rises 94% to 602,700 contracts on the back of higher currency and gold
futures trading
May 12, 2010--The Dubai Gold & Commodities Exchange today announced that 107,641
contracts were recorded in April, a 9% increase on the same period last year and valued at US
$6.12 billion.
The sustained growth in currency futures led trading activity in April with 67,542 contracts
recorded, a year?on?year increase of 168%, reflecting the increased interest in forex trading in
the region.
April 2010 volume in Euro/Dollar futures rose by 71% to 23,656 contracts, while Sterling/Dollar futures were 229% higher at 23,285 contracts. Indian Rupee/Dollar and Yen/Dollar futures recorded increases of 170% and 2031%, with 10,285 and 10,316 contracts traded respectively.
Volume for Gold and WTI crude oil futures, at 31,037 contracts and 6,570 contracts respectively, declined compared with the same period last year.
Speaking on the uptrend in trading, Eric Hasham, Chief Executive Officer, DGCX, said, “We are seeing increased interest in currency futures. In response to the increased demand and feedback from members, the Exchange has decided to widen its forex offering, which will enable participants to gain exposure to the world’s most traded currencies.” In the January?April period, the Exchange achieved an impressive volume growth of 94%, to reach a YTD volume of 602,700 contracts. Valued at US $35.7 billion, the year?to?date volume was largely driven by currency and gold futures. While YTD gold futures volume rose 51%, currencies saw considerable across?the?board growth, with Euro/Dollar and Sterling/Dollar futures up 46% and 393% respectively. The increases in Indian Rupee/Dollar and Yen/Dollar futures were 276% and 1789%. Overall, DGCX currency futures have recorded YTD volume of 429,302 contracts, an increase of 133% on last year.
The Exchange is expanding its range of currency products, launching Australian Dollar/US Dollar,
Canadian Dollar/US Dollar and Swiss Franc/US Dollar on June 15, 2010. DGCX will be attending
and speaking at the 6th Middle East Forex Expo in Beirut, Lebanon on May 20?21, 2010.
Inflation rises to 4.9% in Jordan
May 12, 2010--Figures by Jordan's department of statistics indicate the kingdom's annual inflation rose 4.9% year-on-year in April compared to the same period last year, Reuters has reported.
April consumer price index rose 0.04% compared to March, on the back of a rise in some major food components of the index. Inflation in the first quarter of the year rose to 4.6%, helped by rising energy costs, the data showed.
Although growing in global value, sukuk still lack liquidity
May 11,2010--The global volume of sukuk crossed the symbolic level of $100bn in 2009, but will banks be able to raise Islamic Bonds at common sense levels? While the risk of defaults remains, the possibilities for a global sukuk "currency" are taking shape.
Global Islamic bond issuances last year more than doubled to $31bn compared to 2008. On March 7, Saudi real estate giant Dar Al-Arkan paid back a $600m sukuk. National Bank of Abu Dhabi, the largest bank in the oil-rich emirates, also sold a $750m five-year sukuk in March.
Abu Dhabi Securities Exchange calls for operational consolidation between markets in region
May 10, 2010--Operational consolidation between the region's stock exchanges including the creation of investable products with common themes and the creation of a single central depository in the form of a virtual central depository through the deployment of information technology and the synchronization of account handling and collateral management systems can be the best answer to the markets fragmentation issue, according to Elie Ghanem, Head of Market and Product Development Department (MPD) at Abu Dhabi Securities Exchange (ADX).
Ghanem gave these remarks today at the TradeTech Middle East Summit, taking place in Dubai on May 10-11, 2010, with more than 40 speakers representing 15 countries in discussing a wide range of issues including the challenges of low liquidity levels, regulatory issues, coordination, transparency and the methods to improve trading and trading technologies in the Middle East markets.
Egypt economic growth accelerates
May 11, 2010--Egyptian economic development minister, Osman Mohamed Osman has said that economic growth accelerated to 5.8% in the first three months of 2010
It is the fastest pace in almost two years, Reuters has reported.
Dubai Gold And Commodities Exchange Weekly Views-May 9, 2010
May 9, 2010-Commodities Overview
Commodities prices should be expected to remain very volatile this week. Financial market stability remains tenuous in Europe. The meeting early next week involving European government officials and the International Monetary Fund could serve as a focal point for investor nervousness. Instead of seeing the meeting as a sign that government financial officials are moving to quell sovereign debt problems, the meeting may generate more investor concerns that the debt issues facing Europe (as well as the United States and Japan) are seemingly intractable.
It will take a highly skilled diplomat to convince financial markets that government finance ministers have a credible solution to the debt and deficit problems they are facing. In light of this, gold and silver prices may move even higher this week. Petroleum prices may not move much lower, having already been hammered hard. Crude oil may recover slightly, but remain low compared to recent price levels. Regardless of these directional calls, all commodities prices should be expected to continue to trade in very volatile fashions.
Currencies Overview
Global currency markets will remain volatile this week. The dollar should be expected to gain against the euro and pound, as investors remain concerned about sovereign debt and deficit issues in Europe. Some of the concerns related to Greece have spread through other European countries, even lapping on the pound’s shores. These conditions should be expected to keep investors interested in the dollar as a safe haven. The yen also may benefit from this trend, to some smaller extent. The rupee could recover from last week’s weakness as investors focus on emerging economies as being more attractive than Europe. The problem is that the demand for government bonds from emerging economies has depressed yields on these bonds, reducing their attractiveness to investors.
Dubai International Financial Centre’s GDP Grows 47.1% To Reach US$2.8 Billion In 2008-DIFC Sub-Economy Accounts for 3.4 per cent of Dubai GDP
May 10, 2010--The Dubai International Financial Centre (DIFC) recorded a strong economic performance in 2008, with its nominal Gross Domestic Product (GDP) rising to US$ 2.8 billion, a 47.1 percent increase from its GDP in 2007, according to the latest Economic Note issued by DIFC’s Economics Unit.
The growth reflects the substantial expansion of banking, financial and related activities in DIFC in 2008 and the large influx of new companies that were attracted by the region’s growth prospects, which continue to be strong despite the global financial crisis. Calculated according to the ‘value-added’ of the DIFC sub-economy, the GDP of US$ 2.8 billion accounts for 3.4 per cent of Dubai’s GDP of AED 302 billion (US$ 82 billion).
The figures published in DIFC’s ninth Economic Note are based on the results of the second Survey of Economic Activity in DIFC conducted by the DIFC Economics Unit for the year 2008. Data for the survey were obtained from questionnaires answered by 404 of the 715 companies that were registered in the financial district in 2008. The sample covers about 57% of the total number of registered companies including the largest companies in DIFC by volume of activity. Companies that did not respond were the smallest and the newest, or those that were registered, but were not operational in 2008.
HE Ahmed Humaid Al Tayer, Governor of DIFC said: “DIFC’s achievements represent the success of the UAE’s dynamic economic diversification programmes that have been guided by the vision of HH Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE; and HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The 2008 GDP figures validate the significant impact that DIFC is having on the development of both Dubai and the UAE.”
view the Economic Note 9: DIFC 2008 Economic Activity Survey Results & Contribution to Dubai's GDP
Foreign investors purchase Dhs475.3m worth of shares on DFM during the last week, and sold Dhs496.9m
May 6, 2010--United Arab Emirates: Dubai Financial Market announced today that the value of shares bought by foreign investors, or non-UAE nationals, during last week (2 - 6 May)
reached Dhs475.3m comprising 40.5% of the total value of stocks traded during the period.
ADX rises 0.45%
MAy 6, 2010--The Abu Dhabi Securities Exchange gained 0.45% to day to 2,791, led by the Energy sector, which gained 1.40%.
Market heavyweights Aldar and Dana Gas both ended the day unchanged. Overall, 17 stocks ended lower while six closed higher.
