How is the current trading landscape in the Middle East?
Dubai has always been seen as a global gateway for the commodities trades. And this is only continuing to grow, with Dubai Multi Commodities Centre recently opening the world’s biggest diamond trading floor at the Dubai Diamond Exchange.
It is also a key hub for Islamic finance, one of the fastest-growing sectors in the world. The sector serves a large portion of the global population that has been largely underserved by the financial services industry. It’s thought that the Islamic finance industry will reach $3.8 trillion in assets globally by 2022, from $2.2 trillion in 2016.
While Islamic finance has traditionally focused on banking and mortgages, it has included investment in its remit more recently, with Sharia-compliant funds now gaining in popularity. As a result, Dubai’s location, along with its Islamic background, makes it the perfect location for Shariah-compliant investment opportunities.
How is the FX liquidity space evolving globally?
According to the recent BIS Triennial Central Bank Survey, trading in the FX markets reached $6.6 trillion in Q2 2019, up from $5.1 trillion 3 years ago. The growth of FX derivatives grew faster than spot trading, accounting for almost half of global FX trading. This would suggest a rising trend in traders and brokers placing emphasis on currency risk hedging instruments, and the momentum of derivatives is bound to go further.
Where does Broctagon come in?
Broctagon offers Islamic compliant gold and oil trade offerings backed by physical gold, and by tying the prices of oil futures from exchanges around the world without any positive or negative swaps. Moreover, with multiple asset classes such as FX, gold, oils, and energies, brokers can engage new market segments and reinforce their current product offerings.
It can also connect price feeds from multiple Tier 1 and 2 prime brokers through its NEXUS aggregator. The aggregator offers the best Top-of-Book (TOB) spreads and the most advanced pricing among them to funds, brokerages, and financial institutions.