DUBAI, 29th August, 2022 (WAM) -- The Dubai Gold and Commodities Exchange (DGCX) has signed an agreement with FinMet Pte Ltd as it plans to introduce new gold products to its current precious metals product suite.
FinMet, a precious metals technology, trading, training and logistics provider, will review with DGCX the physical bullion market to identify opportunities across global markets as part of the agreement. FinMet will support DGCX to present the product structure to onboard banks and new members that are seeking diversity in products for their business needs.
In addition to the coordination of product launches, FinMet will help with educating market participants and raising awareness of new DGCX gold trading products that will be launched next month. DGCX plans to launch new Physical Gold Futures and Spot Gold Contracts, expanding its existing product offering.
The introduction of these gold trading products will give traders access to short term capital whilst the bank receives gold as collateral. This allows banks to lend with confidence, whilst the DGCX Clearing house acts as the central counterparty to all transactions.
The five-year agreement was signed by the CEO of DGCX, Ahmed Bin Sulayem, and Pramod Mohan, Co-Founder and Managing Director of FinMet.
Commenting on the agreement, Bin Sulayem said, "We are delighted to forge a partnership with FinMet as part of our wider strategy to innovate new products with market participants from around the world. We are confident that the deep knowledge and expertise that FinMet provides will equip DGCX with a rich understanding of, and readiness to add incredible value to, gold bullion markets through the launch of our forthcoming Physical Gold Futures and Spot Gold Contracts. Through this collaboration, we can look forward to creating new opportunities to build stronger inroads into global markets that offer traders enormous potential and liquidity."
Mohan said, "At FinMet, we are excited to be a catalyst in this development of the UAE bullion market, which truly moves the needle for institutional and corporate participants. The contract satisfies an ever-growing need for pricing, hedging and liquidity for the UAE Gold Delivery Bars. With the recent signing of the UAE-India Comprehensive Economic Partnership Agreement (CEPA), DGCX can now play a role in facilitating the smooth acceleration of trading volumes between the two countries."
DGCX’s partnership with FinMet will help with the launch of the new gold products and will support their goal of providing traders from around the world to trade a broad range of innovative derivatives products that support their business requirements.