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JRG Investor Awareness Campaign 2009 held in Abu Dhabi on June 29.

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Page 1: Jrg Presentation
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WELCOME ADDRESS

MS. CARRIE P BEKKER

Head of Corporate Business & Projects

JRG Metals & Commodities DMCC

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INAUGURATION & INAUGURAL ADDRESS

MR. ESSA SAIF AL QAMZI,

MANAGER

RUWAIS HOUSING DIVISION

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Dubai Multi Commodities Centre (DMCC)

Regulatory and

Compliance Aspects

MR. HASSAN NASSER

Director – Compliance & Inspection

Dubai Multi Commodities Centre (DMCC)

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Dubai Gold & Commodities Exchange (DGCX)

The Right Place

The Right Time

MR. KEVIN DAY

Head of Relationship Management

Dubai Gold and Commodities Exchange

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The Role of Settlement Bank in Commodity Futures

MR. HARSHIT H JAIN

Vice-President and Head of Liabilities

Emirates NBD

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DGCX Opportunities

Investment, Hedging &

Arbitrage

MR. SAJITH KUMAR P K

Director & CEO

JRG Metals & Commodities DMCC

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REAL ESTATE

FIXED DEPOSITS

SHARES & BONDS

MUTUAL FUNDS

GOLD & COMMODITIES

CURRENCIES

FUTURES MARKET &

PRESENT DIVERSIFIED INVESTMENTS

LONG TERM / SHORT TERM INVESTMENTS

HEDGING, ARBITRAGE

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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)

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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

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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.

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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

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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:

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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

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INVESTMENTS

EXAMPLE OF GOLD FROM OUR INVESTMENT PORTFOLIO

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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/-

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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

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GLOBAL FINANCIAL DOWNTURN & THE FLUCUTAIONS OF COMMODITY & CURRENCIES

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GLOBAL FINANCIAL DOWNTURN & THE FLUCTUAIONS OF COMMODITY & CURRENCIES

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GLOBAL FINANCIAL DOWNTURN & THE FLUCTUAIONS OF COMMODITY & FOREX

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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)

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HOW TO ENTER INTO THE FUTURES MARKET

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LONG TERM / SHORT TERM INVESTEMENTS

TAKE DELIVERY

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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.

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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

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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.

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INVESTORS

CLASSIFICATIONS OF PARTICIPANTS IN FUTURES MARKET

SPECULATORS

GAMBLERS

WITH FUNDAMENTAL & TECHNICAL INFORMATION

ONLY WITH TECHNICAL INFORMATION

WITHOUT ANY INFORMATION

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Thank You ………..

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JRG’s Service & Supports to the Investors

MR. SREEJITH VARMA

Assistant Manager

JRG Metals & Commodities DMCC

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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

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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

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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.

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JRG Global Services & Supports

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DAILY & WEEKLY

JRG MULTI-LINGUAL RESEARCH REPORTS &

TECHNICAL TRADING LEVELS

ON ALL DGCX PRODUCTS

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DGCX SURVEILLANCE & RISK MANAGEMENT

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GLOBAL BACK OFFICE SOFTWARE

• Online Contract Note & Statements

• Online Bills & Ledgers

•Online Trade Details

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DGCX LIVE TRADING

THROUGH INTERNET MULTI-LINGUAL SOFTWARE

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DGCX LIVE TRADING

THROUGH MOBILE

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PIONEERS IN MOBILE TRADING

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JRG’s Direct Services to

RUWAIS Investors

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• 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)

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HOW TO START TRADING ?

OPEN INDIVIDUAL or CORPORATE ACCOUNT

As per the rules of DGCX & ESCA

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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

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Thank You ………..

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DGCX Mock Trading Session

MR. MOHAMMAD AL HAMMADI

Relationship Manager

Dubai Gold and Commodities Exchange

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VOTE OF THANKS

MR. BABU K LONAPPAN

Director

JRG Metals & Commodities DMCC

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WELCOME ADDRESS

MS. CARRIE P BEKKER

Head of Corporate Business & Projects

JRG Metals & Commodities DMCC

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Thank You ………..

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