DGCX begins members' training

The programme will be conducted regularly and will continue in the months to come.

The programme will be conducted in a sophisticated training facility created at the new premises of DGCX in Emaar Business Park. It will be conducted by the training department of DGCX for the purpose of fully familiarizing its members with the intricacies of electronic commodities derivatives markets. As part of the programme, market participants will be provided with exhaustive reference material that will guide them in there trading and settlement operations.

Framroze Pochara, Chief Executive, DGCX, said: "We at DGCX understand our responsibility of training our market participants. Our project implementation is going as per schedule. Post our successful membership drive it is important that DGCX should start with the training of its members. This is essential for the new members of DGCX given the Exchange's electronic trading platform and its products."

He continued: "The programme that we have developed for our members is extremely comprehensive and will ensure a high degree of readiness when the Exchange opens for trading in November 2005. The structuring of the programme is also a proof of our commitment to our members and to the overall marketplace,"

The programme will accommodate a batch of 20 participants every time it is conducted. Each session is divided into four components spread over two days. Members will be given comprehensive training on derivatives products, trading methodology, clearing and settlement procedures, the elements of a brokerage business and using the DGCX Trading Terminals and Risk Management Application.

The first component of the programme will focus on the emergence of commodity futures exchanges and their growing economic importance. It will cover future and options contracts, their uses, pricing and basic trading strategies. In the second component, members will be taken through the various processes involved in trading, risk management, clearing and settlement.

Thirdly, members gain "hand on" experience of the DGCX trading and risk management applications that they will be using once the exchange goes live. To provide a near-to-live experience for members, DGCX has created a simulated trading environment with high-end servers and computer terminals. Members will be allocated User Identification Numbers and trading terminals on which they will undertake simulated trading supervised by DGCX trainers. This will ensure that members are fully conversant with the features of the DGCX trading and risk management application. The final component will cover the establisnment of an effective brokerage operation, and members' roles and responsibilities towards the DGCX, the regulator and clients. It will also focus on compliance and disclosure issues.

Pochara said that the training programme will help the members run their new brokerage businesses smoothly and also address their clients' requirements in the best possible manner.