jrg presentation
DESCRIPTION
JRG Investor Awareness Campaign 2009 held in Abu Dhabi on June 29.TRANSCRIPT
WELCOME ADDRESS
MS. CARRIE P BEKKER
Head of Corporate Business & Projects
JRG Metals & Commodities DMCC
INAUGURATION & INAUGURAL ADDRESS
MR. ESSA SAIF AL QAMZI,
MANAGER
RUWAIS HOUSING DIVISION
Dubai Multi Commodities Centre (DMCC)
Regulatory and
Compliance Aspects
MR. HASSAN NASSER
Director – Compliance & Inspection
Dubai Multi Commodities Centre (DMCC)
Dubai Gold & Commodities Exchange (DGCX)
The Right Place
The Right Time
MR. KEVIN DAY
Head of Relationship Management
Dubai Gold and Commodities Exchange
The Role of Settlement Bank in Commodity Futures
MR. HARSHIT H JAIN
Vice-President and Head of Liabilities
Emirates NBD
DGCX Opportunities
Investment, Hedging &
Arbitrage
MR. SAJITH KUMAR P K
Director & CEO
JRG Metals & Commodities DMCC
REAL ESTATE
FIXED DEPOSITS
SHARES & BONDS
MUTUAL FUNDS
GOLD & COMMODITIES
CURRENCIES
FUTURES MARKET &
PRESENT DIVERSIFIED INVESTMENTS
LONG TERM / SHORT TERM INVESTMENTS
HEDGING, ARBITRAGE
IMPORTANCE OF FUTURES EXCHANGES
Futures Exchanges are
Regulated by Regional Regulators
Dubai Gold & Commodities Exchange (DGCX)
Licensed by Dubai Multi Commodities Centre (DMCC)
Regulated by Emirates Securities & Commodities Authority (ESCA)
ADVANTAGES OF FUTURES MARKET
• DGCX - REGULATED MARKET (Regulated by Emirates Securities & Commodities Authority ESCA).
• TRANSPARENCY IN PRICE DISCOVERY (Trade through Internet & Mobile)
• LIQUID MARKET (Easy Entry and Exit)
• NO COUNTER PARTY RISK (Clearing House Management)
• ABILITY TO GO LONG and SHORT POSITIONS
• INVESTOR PROTECTION (Technologically advanced Trading Platform closely monitored by the Exchange and Regulator)
• MARGIN TRADING SYSTEM
DEFINITION OF FUTURES CONTRACT
Futures contracts are standardized contracts in terms of price, quantity and quality.
Delivery time and place for settlement are predetermined, in the future. These contracts are traded on the exchanges. So liquidity risk does not exist in the futures market.
In the futures market, the clearing corporation of the exchange becomes the counter party to all the trades. So clearing corporation will take care all counter party risks.
Eg: Gold – Next expiry date is on 7th AUGUST 2009.
DGCX CURRENT RUNNING CONTRACTS
DG AUG 07AUG2009
DG OCT 07OCT2009
DGBP SEP 18SEP2009
DEUR SEP 18SEP2009
DINR JUL 29JUL2009
DJPY SEP 18SEP2009
DWTI JUL 17JUL2009
DWTI AUG 19AUG2009
DSTL JUL 02JUL2009
DGCX MAJOR PRODUCTS & MARGIN
Precious Metals :
Currencies:
Energy:
DG - Dubai Gold 1 LOT = 1 Kg (32 Troy Ounce) Margin - $1,000/- per lot
DS - Dubai Silver 1 LOT = 1,000 Troy Ounce Margin - $1,000/- per lot
DINR - Indian Rupee 1 LOT = Rs. 20,00,000/- Margin - $ 800/- per lot
DEUR -Euro 1 LOT = € 50,000/- Margin - $ 1,500/- per lot
DGBP-Brittan Pound 1 LOT = £ 50,000 Margin - $ 1,500/- per lot
DJPY – Japan Yen 1 LOT = ¥ 5,000,000 Margin - $ 1,200/- per lot
DWTI-West Texas Intermediate Light Sweet Crude Oil
1 LOT = 1000 BARRELS Margin - $ 5,000/- per lot
DSTL – Dubai Steel Rebar
1 LOT = 10 TONNES Margin - $ 600/- per lot
Base Metals:
TRANSACTION IN DGCX
BUYING - YOU CAN BUY PRODUCTS BY PAYING THE MARGIN PRESCRIBED BY DGCX WITH THE ASSUMPTION OF TAKING
THE DELIVERY ON FUTURE EXPIRY DATE.
HOWEVER, THERE IS NO OBLIGATION TO TAKE DELIVERY COMPOLSORILY. YOU CAN SQUARE OFF THE POSITION BEFORE DELIVERY.
SELLING - YOU CAN SELL PRODUCTS BY PAYING THE MARGIN PRESCRIBED BY DGCX WITH THE ASSUMPTION OF GIVING
THE DELIVERY ON FUTURE EXPIRY DATE.
HOWEVER, THERE IS NO OBLIGATION TO GIVE DELIVERY COMPULSORILY. YOU CAN SQUARE OFF THE POSITION BEFORE DELIVERY.
THE MINIMUM BUY / SELL QUANTITY WILL BE ON 1 LOT BASIS
INVESTMENTS
EXAMPLE OF GOLD FROM OUR INVESTMENT PORTFOLIO
A comparison of
SPOT and FUTURES GOLD INVESTMENT
SPOT INVESTMENT
through Jewellers
&
MARGIN (FUTURES) INVESTMENT
Through the Exchange - DGCX
BUYING OF 1 KG (32 troy ounce)
@ GOLD PRICE PER OUNCE - $ 980/-
SPOT
(Dubai Gold & Jewellary Group)
FUTURES
(Dubai Gold & Commodities Exchange) (DGCX)
At Shop
Full payment (980 x 32 = $ 31,360/-)
Cash/credit card dealings
Immediate delivery
Storage difficulty
Insurance cost
Work cost
Online / Mobile Trading from Home/Off.
Margin payment ($ 1,000/-)
Cheque dealings only
Delivery on futures delivery day
(Quality & quantity assured)
Roll-over facility
No cost
Brokerage
GLOBAL FINANCIAL DOWNTURN & THE FLUCUTAIONS OF COMMODITY & CURRENCIES
GLOBAL FINANCIAL DOWNTURN & THE FLUCTUAIONS OF COMMODITY & CURRENCIES
GLOBAL FINANCIAL DOWNTURN & THE FLUCTUAIONS OF COMMODITY & FOREX
GLOBAL FINANCIAL DOWNTURN & THE FLUCTUAIONS OF COMMODITY & FOREX
7.58 8.41 7.8912.37
17.5
32.43
4548.34
38.4842.51
52.09
0
10
20
30
40
50
60
Series1 7.58 8.41 7.89 12.37 17.5 32.43 45 48.34 38.48 42.51 52.09
1970 1975 1980 1985 1990 1995 2000 20062007(O
ct)2008(June)
2009(March)
HOW TO ENTER INTO THE FUTURES MARKET
LONG TERM / SHORT TERM INVESTEMENTS
TAKE DELIVERY
SPECULATION
INTRA DAY SPECULATION – Buying/ Selling or Selling / Buying
square off the position on the same day
MARKET SPECULATION - Buying / Selling or Selling / Buying
square off the position before expiry date.
OPEN POSITIONS - Keep the positions more than one day
after buying or selling.
TERM USAGES :
Bullish - Optimistic in the Market
Bearish - Pessimistic in the Market
Short Position - sell before buy or sell without having product
Long Position - buy and keep the position open.
HEDGING
HEDGE To protect loss/risk whenever market shows uncertainty in price
HEDGE by creating by opening equal opposite positions in another contract / account
HEDGE against PHYSICAL STOCK
Eg: When Gold price comes down, Jewellers / HNIs are Hedging (selling) their equal physical stock quantity with Futures Market.
HEDGE against FUTURES POSITIONS
Eg: Whenever market goes against the expectation of the Client and market shows uncertainty, Investor can Hedge their futures positions by selling/buying equal quantity in Different Contract or Account.
HEDGE can be done in Precious Metals, Currencies, Energy & Steel Contracts
- Manufacturers are doing Hedging on their Physical Stocks- Importers & Exporters are getting DOUBLE benefits
by hedging their Products & Currency
ARBITRAGE
ARBITRAGE is the practice of taking advantages of price difference between two ormore markets.
NRIs are getting the opportunity to do the Arbitrage in between DGCX & MCX/NSE.
INVESTORS
CLASSIFICATIONS OF PARTICIPANTS IN FUTURES MARKET
SPECULATORS
GAMBLERS
WITH FUNDAMENTAL & TECHNICAL INFORMATION
ONLY WITH TECHNICAL INFORMATION
WITHOUT ANY INFORMATION
Thank You ………..
JRG’s Service & Supports to the Investors
MR. SREEJITH VARMA
Assistant Manager
JRG Metals & Commodities DMCC
JRG Group Started providing Financial Services and Supports to the investors from 1992 onwards from India
JRG started services in UAE from 2005
and become the
1st Broker and Clearing Member of
Dubai Gold & Commodities Exchange
ABOUT JRG METALS & COMMODITIES DMCC
• BROKER & CLEARING MEMBER OF DUBAI GOLD AND COMMODITIES EXCHANGE.
• SUBSIDIARY COMPANY OF JRG SECURITIES LTD. INDIA, A LISTED COMPANY IN BOMBAY STOCK EXCHANGE
•PERFORMING AS ONE OF THE TOP BROKER & CLEARING MEMBER OF DGCX
• CONTINUOUS PERFORMER IN DGCX TOP 10 TRADING BROKER & CLEARING LIST FROM 2006
Director Board
Mr. Hazza Mohammed Yahya Mohammed Al Dahmi
UAE National from Al-Ain with immense experience in both domestic and international Financial Markets with a great vision to provide latest investment opportunities to UAE Nationals and other investors inside and outside UAE.
M/s. JRG Securities Ltd.
Indian listed company at Bombay Stock Exchange and JRG is one of the leading Stock, Commodity and Insurance Brokerage Houses in India having more than 1500 retail outlets.
Mr. Babu K Lonappan
Dynamic entrepreneur, started business in 1996 from UAE and today he is leading 10 establishments in India and Middle East.
Mr. Sajith Kumar P K
An International Financial Service Industry professional having 15 years of vast experience in Stock Exchanges and Brokerage Houses.
JRG Global Services & Supports
DAILY & WEEKLY
JRG MULTI-LINGUAL RESEARCH REPORTS &
TECHNICAL TRADING LEVELS
ON ALL DGCX PRODUCTS
DGCX SURVEILLANCE & RISK MANAGEMENT
GLOBAL BACK OFFICE SOFTWARE
• Online Contract Note & Statements
• Online Bills & Ledgers
•Online Trade Details
DGCX LIVE TRADING
THROUGH INTERNET MULTI-LINGUAL SOFTWARE
DGCX LIVE TRADING
THROUGH MOBILE
PIONEERS IN MOBILE TRADING
JRG’s Direct Services to
RUWAIS Investors
• Industrial Training to the Companies Management & Staff Members
• Relationship Officers to handle your queries.
• RTT Division ( Research, Training & Technology division).
• Personalized Services and Supports ( English & Arabic)
HOW TO START TRADING ?
OPEN INDIVIDUAL or CORPORATE ACCOUNT
As per the rules of DGCX & ESCA
Please take the assistance directly from Team JRG to open the account Today
Individuals/Partnerships Financial Institution/Corporation/Foundation/Charity
1. Photo – 12. Copy of passport or driving license along with Originals for Verification3. Copy of utilities bill (Electricity OR Water OR
Land line telephone Bill) along with originals for verification4. Letter from bank confirming relationship OR Statement of accounts (no more than 3 months old)5. For ‘Proprietor’ - Valid trade license or similar documentations along with originals indicating business name/existence6. For ‘Employee’- Copy of labour card/Employee card / Entry pass card etc (any tangible evidence connecting Client to his/her place of work)
1. Photo -12. Copy of passport or driving license along with Originals for Verification3. Copy of utilities bill (Electricity OR Water OR
Land line telephone bill) along with originals for verification4. Unless Client is a bank, letter from Client’s main bank confirming relationship required5. Copy of Client’s latest audited financial statements OR if not immediately available, a brochure/leaflet that unequivocally identifies entity’s on-going business. (Financials should be provided as soon as possible)6. Financial Informations: If financial statements are not immediately available or, financials are not latest ( ie, more than 16 months old), please get verbal estimation of current ‘total balance-sheet assets’. Origin of assets deposited into account’ could be ‘bank’s investment funds’ or ‘company’s hedging account fund’7. Copy of Trade License, Copy of Memorandum & Articles OR Partnership deed
Thank You ………..
DGCX Mock Trading Session
MR. MOHAMMAD AL HAMMADI
Relationship Manager
Dubai Gold and Commodities Exchange
VOTE OF THANKS
MR. BABU K LONAPPAN
Director
JRG Metals & Commodities DMCC
WELCOME ADDRESS
MS. CARRIE P BEKKER
Head of Corporate Business & Projects
JRG Metals & Commodities DMCC
Thank You ………..