MENACORP aims to be significant player in commodities segment
Published: 15:45 August 1, 2015
By Siddesh Suresh Mayenkar, Staff Reporte
Dubai: UAE’s largest brokerage firm, MENACORP, which expanded into commodities trading recently, plans to be a significant player on the DGCX in the short-term.
MENACORP started its operations on DGCX in June, and plans to engage with corporates, and other existing investors in the next 2-3 months.
“We are engaging with the corporates on a more serious level. We are working on the details like how to go about it, how to propose, so by August we will have our blueprint ready,” Arshad Khan, executive director at MENACORP told Gulf News.
“We have seen volumes growing. We have made a decent progress so far. Within a few weeks of being operational on the exchange, our volumes are in three digit figure,” he added without giving more details.
The target is to establish MENACORP as a leading player on the DGCX and to repeat the feat that the brokerage achieved in equities in commodities too, he added.
“The company wants to diversify into other asset classes as currently the operations revolved around equity markets. We are now looking to offer the products listed on the DGCX to the existing customer base as well as new investors,” Khan said.
“The first purpose is to offer a hedging platform to the consumers of commodities. The region is very rich in terms of oil production, precious metals, and other commodities, which low between the African or European markets to Asian markets,” Khan said.
From that perspective even when the prices are falling or rising, we have a strong need from traders to hedge the price risk. So depending on the requirements we can hedge according to their requirements. So price volatility is a good thing for us.
There could be investors, and he can also participate in the market as we offer products like short selling. People can take view and accordingly trade. With price volatility, and the ups and down of commodities cycle is a good time to offer these products.
MENACORP will advise, provide trading platform to investors in commodities.