The first commodity derivatives exchange in Mideast goes live

DUBAI — Dubai Gold and Commodities Exchange (DGCX), the regions first commodities derivatives exchange will go live today with the first trade to be contracted at 10am.

By Babu Das Augustine (Assistant Editor)

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Published: Tue 22 Nov 2005, 11:13 AM

Last updated: Thu 2 Apr 2015, 5:24 PM

The exchange was officially inaugurated by General Shaikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister, yesterday at an event attended by regional and international business leaders, market participants, DGCX stakeholders and international players in the global commodities market such as traders and representatives of banks.

With the opening of DGCX for derivatives trading, Dubai has joined the big league commodities derivatives trading such as Chicago, New York, London and Tokyo.

"November 22 will be a momentous day for Dubai, the global commodities trading community and the wider business community. Tomorrow, the world's newest exchange and the Middle East's first electronic derivatives exchange will be trading," Framroze Pochara, chief executive of DGCX said.

The DGCX will commence trading with a one-kilogramme gold futures contract. "It is only a befitting tribute to Dubai's status as the 'City of Gold' that we are starting the first trade on the exchange in gold futures," he added.

From day one, members will be able to trade in six forward months for gold futures, and trading of silver futures and gold and silver options will be available during first quarter of 2006. With its extensive portfolio of listed commodities including gold, silver, freight, cotton, steel and marine fuel oil, DGCX is set to offer an efficient platform for the trading, clearing and settlement of a diverse range of commercially important derivative products.

"The exchange is geared for multi commodities trade and our systems are ready for introduction of any number of new commodities," said Arshad Khan, director, DGCX.

From day one, DGCX will offer an uninterrupted trading window of thirteen hours and fill the time gap between Far East and Europe. The exchange is confident that it will see wide participation from approved members from diverse backgrounds such as commodity traders, banks, brokerages and other financial institutions, who will trade and clear their obligations on T+1 basis. The market will ensure that the best risk containment measures are implemented and followed.

DGCX provides end-to-end solutions for the commodities markets providing a regulated and secure exchange mechanism, providing a new line of business, educating the marketplace and thus contributing to the already vibrant economy of the region. The launch of the commodities exchange will be one more good reason for international players to come and set up shop in Dubai.

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