The Dubai Metals and Commodities Center (DMCC), Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (India) Limited (FTIL) today announced the formation of the Dubai Gold and Commodity Exchange (DGCX), a new exchange, developed to facilitate the trade of gold and commodities.
The transactions on the DGCX will take place on a state-of the-art electronic trading platform which will be deployed by FTIL, in line with the system introduced for commodity exchange trading in India, and which has been successfully in operation since 2003.
“Appropriately for the ‘City of Gold’ the first contract listed on the exchange will be gold, but that will be quickly followed by other contracts. As the exchange develops and gains in prominence, we expect a significant amount of trade in silver, steel, freight, cotton and energy contracts, so that we can achieve a balanced portfolio with futures and options contracts available for all listed commodities,” says DMCC’s Executive Director for the Gold and Precious Metals sector Colin Griffith.
The announcement follows the signing of an official Memorandum of Understanding between the DMCC (a strategic Dubai Government initiative), MCX and FTIL to work together towards the creation of Dubai’s newest exchange. Subject to receiving the necessary regulatory approvals the exchange will commence operations in the second half of 2005.