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Launched in October 2007, the Dubai Professional Trading Group (Dubai PTG) is the first independent trading arcade in the Middle East for both professional and new traders looking to establish a base in one of the world’s fastest-growing, safest and exciting cities. Dubai PTG is a joint venture between experienced Dubai-based market professionals and the Dubai Multi Commodities Centre (DMCC) – a Government of Dubai initiative.

Dubai PTG offers routes to financial and commodities exchanges in the region as well as other major financial hubs across the globe. Strategically located in Dubai -- the Gulf’s commercial hub -- the arcade offers a trading floor atmosphere in the time zone between Europe and the Far East. The arcade offers traders - particularly those focused on futures and options - access to sophisticated trading technology, connectivity to markets, market data, analytics, clearing and settlement services.

Dubai PTG traders will benefit from wholesale rates of commission on each trade, enabling them to aggregate their buying power and reduce their costs. Dubai PTG supplies the facilities required to trade electronically, including a high-tech trading room, superior risk management systems, and dedicated leased line connections.

Dubai PTG offers a competitive in-house training programme for regionally-based professionals who want a career in trading.

Founders:
James Hume: A British investor who has 25 years of diversified, comprehensive experience in the fields of Treasury and Investment Management, Global Private Banking and Treasury Product Development.

Hume moved to Dubai in 2002, leading the business development function for the Dubai International Financial Centre (DIFC) initiative. He is also involved in other regional initiatives including renewable energy, base and precious metal trading, and trust administration.

Hume’s career includes 16 years at the Bank of America and 10 years in a variety of trading roles with King & Shaxson, Rothschild, Amex Bank and American Express.

Benedict Floyd: A British investor who, after leaving school, joined Credit Suisse Financial Products, the recognized worlds leading bank in derivative trading, at the bank’s inception as a fixed income trader and remained with the bank for 12 years working in both London and Zurich.

In 2002, Floyd joined Bank of America in London as a director of foreign exchange forwards, moving in 2004 to proprietary trading, trading derivatives in all asset classes. Settling in Dubai in 2005, he launched Art Dubai, a contemporary art fair, which is now counted as one of the key annual events in Dubai –partly owned by the Dubai Government.

Floyd joined the Dubai Gold and Commodity Exchange in 2006, the region’s first derivative exchange, as General Manager of Product and Business Development, interacting with all parties involved in futures trading in the region and abroad. In this role, he was responsible for promoting the exchange and launching new products, including the world’s first ever Indian Rupee future. In 2007, Floyd left the DGCX to join James Hume and the DMCC in setting up Dubai PTG.

Definition of a trading arcade:
An independent trading arcade is a place that enables individual traders to work together, share office costs, rent state-of-the-art technology and benefit from significantly reduced commissions through high volume electronic trading. They enable individual traders to work alongside experienced like-minded market players whilst trading the financial market of their choice with their own money and keeping all profits and commission earned.

Traders pay a monthly seat charge and in return get the latest connectivity and order routing technology, market data, analytic package, risk management systems and usually cheaper trading fees.

History of trading arcades:
Independent trading arcades (or boutiques) are electronic trading firms that have grown in popularity over the last decade as a result of trading contracts becoming electronic and the subsequent closure of markets following the open outcry when The London International Financial Futures and Options Exchange (LIFFE) shut down. Tech-savvy traders were aware of times changing; however, many experienced floor traders were out of work and needed to salvage their career and continue working. Rather than work for themselves, they clubbed together in order to share costs as a group and recreate the buzz and camaraderie they had previously enjoyed. The introduction of trading arcades in the world’s major financial hubs has enabled communities of professional traders to continue their livelihood, in an almost identical trading environment. The concept began in London but has since spread to the US where arcades can be found in Chicago and New York City. They attract a range of traders from tech-savvy traders straight out of university to those seeking a new career path.

Trading arcades versus proprietary trading firms:
The main distinction between an arcade and a proprietary trading firm is that in an independent arcade, traders only trade their own money, while in a proprietary shop they trade the firm’s capital.

Advantages of independent trading arcades:
At Dubai PTG, Risk Managers will be present in the trading room to assist traders as part of the lease package. Traders save from aggregating costs whilst enjoying the benefits of using sophisticated technology. The set-up of traders working together will produce a conducive atmosphere as they will be able to share ideas and experience the buzz and feel of working alongside colleagues whilst ultimately trading independently.

Pre-requisites of traders:
Applicants need no professional qualifications and may come from any background but will need to be interested in long-term trading, and have the necessary capital.

Facilities:
Dubai PTG is based in Dubai, which offers a 50-year tax holiday to resident companies. The company, which can house 136 traders under one roof by the end of 2008, provides access to 47 global markets.

Clearing services:
Newedge, born from a merger of SocGen’s Fimat arm, and Credit Agricole’s Calyon Financial division, provide Dubai PTG’s clearing services.

Dubai PTG Training programme:
The Dubai PTG Training Programme is free but those wishing to qualify will initially need $50,000 in trading capital. Questionnaires will be conducted to determine candidates’ suitability and those successful candidates will progress onto the first workshop which will be held in Dubai. Trainees will be at an advantage as, unlike other training schools, they will be taught by successful, accomplished traders.

The Dubai PTG Training Programme is the Middle East’s first-ever, hands-on course developed and managed by seasoned financial services professionals. It offers a unique opportunity for fresh traders from all backgrounds to develop new knowledge and skills in trading as a self-employment opportunity, using their own capital. Participants will benefit from wholesale rates of commission on each trade.

Why Dubai:
Dubai is the ideal location for a trading arcade as it has the infrastructure available for new and experienced traders and the ability to accommodate international and regional traders. Traders resident in Dubai will be able to take advantage of the lifestyle, climate and tax-free earnings; additionally, the optimum time zone will enable them to trade many markets around the world.

References:
1 – Reuters News Agency. "Dubai trading arcade opens its doors", Reuters News Agency, October 21, 2007 

2 – Zawya.com. "Arrival of Middle East’s first trading arcade – Dubai PTG – to provide new market opportunity for traders and regional exchanges", Zawya.com, October 22nd, 2007:

3 – ameinfo.com. "Middle East’s first trading arcade – Dubai PTG – appoints Chief Operating Officer", ameinfo.com, November 19th, 2007:

4 – business.maktoob.com. "Middle East’s First Trading Arcade – Dubai PTG – To Address Regional Trading Potential at ‘Derivatives World Dubai’", business.maktoob.com, November 29th, 2007:

5 – zawya.com. "Middle East’s first trading arcade - Dubai PTG – opens for business, announces training programme", zawya.com, December 18th, 2007:

6 – White, Andrew. "Tricks of the Trade", Arabian Business Magazine, 13th January 2008,

7 – Arabianbusiness.com. "Tricks of the Trade", Arabianbusiness.com, January 13th, 2008,

8 – efinancialcareers.com. "Dubai PTG professional trading programme", efinancialcareers.com, February 11th, 2008

See also:
Dubai Gold and Commodities Exchange

Multi Commodities Exchange 

Dubai Mercantile Exchange 

Futures Exchanges 

Dubai 

External Links:
Dubai PTG website: