DGCX to tap algo traders, market-makers

The Dubai Gold and Commodities Exchange (DGCX) has cut twodeals to boost electronic trading and market-making on the Gulf commodities andcurrency market.

DGCX said on Tuesday it has reached an agreement withhigh-frequency trading tech firm Avelacom to provide existing and potential newmembers with hosting and co-location solutions.

The partnership will leverage Avelacom’s new trading hub inDubai that provides milli-second connections to the world’s top trading centressuch as Singapore, London and Chicago.

Gaurang Desai, the chief executive of DGCX, said: “Ourpartnership with Avelacom continues to endorse our commitment to offer ourmembers global access to the world’s leading trading technology solutions.”

Aleksey Larichev, a managing director at Avelacom, added: “Weintend to service the requirements of our existing client base as well as winnew business in the Middle East because of rising demand for low latencyconnectivity and infrastructure solutions for trading.

The DGCX pact with Avelacom emerged less than a day afterthe Dubai market said ABN Amro Clearing, one of the world’s top futures andoptions clearing houses for prop traders and market-makers, had become aspecial clearing member in its clearing house Dubai Commodities ClearingCorporation.

Desai said: “ABN Amro is a global leader in clearingservices and its addition to the DGCX community further demonstrates ourability to offer a platform for international banks to expand and build theirglobal footprint in this region.”

Martin Frewer, global director, principal trading group, atABN, added: “Our broad client base of liquidity providers will now be able totake advantage of our correlated risk tools for optimising collateral in a newjurisdictions and be able to bring the DGCX’s suite of products into theirglobal portfolios.”

DGCX has seen its volumes spike this year with year-to-datevolumes until the end of August up 43% to almost 13 million contracts,according to Euromoney TradeData.

Its Indian Rupee currency and gold contract are its topperforming products in 2016, according to TradeData.