DGCX takes aim at seven-day trading

The Dubai Gold & Commodities Exchange (DGCX) has revealed plans to extend trading hours to seven days a week. The move is to take place before the end of 2006, and will provide a unique opportunity for traders to deal whilst other key international markets are closed.

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By  Andrew White Published  May 21, 2006

The Dubai Gold & Commodities Exchange (DGCX) has revealed plans to extend trading hours to seven days a week. The move is to take place before the end of 2006, and will provide a unique opportunity for traders to deal whilst other key international markets are closed. “There are plans for the market to trade seven days a week,” Framroze Pochara, Chief Executive Officer of DGCX, told Arabian Business. “The local markets are open here on Saturdays and on Sundays, so DGCX being open at these times will help them,” he added. “The international players will also have the opportunity to operate, because the international markets will be closed.” The online commodities derivatives exchange, which commenced trading in September last year, is currently open from Monday to Friday. However, strong demand from existing members has prompted the exchange’s management to consider extending its hours. “Some of the members are giving us a hard time as we speak, asking us to open these windows,” said Ahmed Bin Sulayem, Director of DGCX and Chief Operating Officer of the Dubai Metals and Commodities Centre (DMCC). “For the last few months I’ve been getting calls from a few members I know, saying ‘Saturdays and Sundays – whatever happened to that?’” Bin Sulayem stressed, however, that DGCX was proceeding cautiously with the plan, so as not to overextend the burgeoning exchange. “We are being careful because we don’t want to open it and have it just for one or two members – we want to have the right justification and timing,” he said. The new windows will initially open for a maximum of three hours a day at the weekend. Monday to Friday, the current window of 10am to 10.30pm will remain in place. However, Framroze refused to rule out further extensions to the weekend windows, depending on the level of demand for the service. “This should be in place by the end of the year,” he revealed. “However, if the demand is there, and if the members want it, then we’ll extend that window. There are two schools of thought out there – one who says ‘at least let us have two days off’, and the other who says ‘why aren’t you open?’ So we have to balance that.” DGCX is a joint venture between the Dubai Metals and Commodities Centre (DMCC) – Government of Dubai, Financial Technologies (India) Limited and Multi Commodity Exchange of India Limited (MCX). It is a fully automated, electronic trading platform accessible from anywhere in the world, and is designed to link the trading hours of the Eastern and Western international markets. The exchange currently offers gold futures, and will soon boast silver futures as well as gold and silver options. Currency futures trading in euro-dollar, yen-dollar and sterling-dollar will begin in June, and there are also plans to introduce trading contracts in commodities such as steel, sugar, and pulses.

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