DMCC joins forces with Multi Commodity Exchange of India Ltd & Financial Technologies (India) Ltd.

Dubai, 9th November 2004; The Dubai Metals and Commodities Centre (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. Subject to receiving the necessary regulatory approvals the exchange will commence operations in the second half of 2005.

The announcement follows the signing of an official Memorandum of Understanding between the DMCC,  MCX  and FTIL to work together towards the creation of Dubai's newest exchange.

"The creation of the DGCX is a landmark achievement in the development of Dubai's infrastructure, and will deliver an excellent value proposition for the global trading community," said Mr. Ahmed bin Sulayem, DMCC's Chief Operating Officer. "This electronic platform is in line with the vision of His Highness General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Minister of Defence, to create an advanced infrastructure to meet the high-tech needs of businesses engaged in these sectors," continued Mr. bin Sulayem. 

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.

DMCC's Executive Director for the Gold and Precious Metals sector, Mr Colin Griffith, commented: "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."

Mr Jignesh Shah, Managing Director, MCX and Chairman & Managing Director, FTIL said: " This landmark achievement unfolds the real potential of the Indian technology expertise and the domain knowledge of its human intellectual capital. FTIL will be deploying the complete technology solution platform, which will be further strengthened with the involvement from MCX, which will be contributing its functional know-how ensuring DGCX go-live is achieved as per our plans. It's a clear vision of all the partners that DGCX will emerge as a vibrant global exchange in the shortest possible time."

The DMCC has been rolling out a number of new initiatives focussed on the trading of physical commodities, including the Dubai Commodity Receipt, the Dubai Tea Trading Centre and the Dubai Diamond Exchange, to enhance the current market infrastructure for the gold, commodities, and diamond sectors in Dubai.

"This exciting initiative reflects DMCC's core philosophy of building market infrastructure from the ground up.  Through our relationships with Dubai Customs, Dubai Ports Authority, Jebel Ali Free Zone and market advisory committees such as the Dubai Gold Advisory Group and the Dubai Commodity Receipt (DCR) Advisory Committee, DMCC has well-developed regional market networks in gold, metals, soft commodities, energy products and logistics.  These networks provide a fundamental cornerstone for the successful development of DGCX." added Dr. David Rutledge, DMCC's Executive Director of Commodities.

The Multi-Commodity Exchange of India (MCX) is an independent and de-mutualised exchange with permanent recognition from Government of India for facilitating online trading, clearing and settlement operations for commodity futures markets across the country. Key shareholders of MCX are Financial Technologies (India) Ltd., State Bank of India (India's largest commercial bank), Union Bank of India, Corporation Bank, Bank of India and Canara Bank.

Executives at both exchanges emphasized that India and Dubai have enjoyed a close collaborative working relationship across the full commodity range for many years, and they looked forward to continuing that partnership in the future.

-Ends-

Note to Editors:
About DMCC:
The Dubai Metals and Commodities Centre (DMCC) was created in 2002 as part of a strategic goal by the Dubai Government to establish a commodity market. It provides the market infrastructure that brings together a wide range of commodities activities, and is committed to serve the needs of participants in the gold, diamonds and commodities markets. Resident are offered highly attractive benefits under a free zone statues, including a 50-year guaranteed tax holiday, 100 percent ownership, full ownership of business premises, and secure regulated environment.

About MCX:
Multi Commodity Exchange of India Ltd, (MCX) an independent and de-mutualised multi commodity exchange, has permanent recognition from the Government of India. MCX, a state-of-the-art nationwide, digital exchange facilitates online trading, clearing and settlement operations for a commodities futures trading. Key shareholders of MCX are Financial Technologies (India) Ltd, State Bank of India, Union Bank of India, Bank of India, Corporation Bank & Canara Bank. Headquartered in Mumbai, MCX is led by an expert management team with deep domain knowledge of the commodity futures markets and has successfully established a thriving digital market for trading in Gold, Silver, Steel, Kapas, Cotton, Rubber, Black Pepper, Oil & Oil Seeds, Wheat and Rice, Ferrous and Non-Ferrous Metals, Agri Commodities, Pulses and Soft commodities. 

About FTIL:
Financial Technologies (India) Ltd. (FTIL) is India's leading technology enterprise delivering mission critical Straight-Through-Processing (STP) solutions for the global Financial Services Industry. FTIL is a Vertical Specialist and a domain expert with proven transaction automation solutions for Equity, Forex, Commodity and Derivatives market operations. This covers all the stages of a Trade Life Cycle: - Pre-Trade, Trade and Post-Trade operations. FTIL under a permanent recognition from Government of India has set-up a nationwide online multi commodity futures exchange - Multi Commodity Exchange of India Ltd., (MCX). FTIL has commissioned an inter-bank forex exchange trading platform FXDirect under a formal mandate of Reserve Bank of India (Country's Central Bank) & Foreign Exchange Dealers Association of India (FEDAI). FTIL is Global STP Partner with OMGEO.

For further information, please contact:
Karim Chrobog/ Ashraf Al Shakaa
Bates PanGulf PR,
Dubai,
UAE
Tel: 971-4-295-3456;
Fax: 971-4-2247839

© Press Release 2004