Exchange Publishes Names of First 50 Members.
- DGCX, the first commodities exchange in the Middle East, will commence trading in gold futures on 22 November
- Launch Ceremony to be held on 21 November
- DGCX has published a list of its first 50 members which includes National Bank of Dubai, Mashreq Securities, Standard Bank
- Over 270 applications for membership have been received
Dubai - Dubai Gold and Commodities Exchange, the world's newest commodities exchange and the first such marketplace in the Middle East, announced today that it will commence trading operations on 22 November, 2005. At 10.00 a.m. on that day DGCX will open its gold futures market.
The commencement of trading on DGCX will be marked the previous evening by an opening ceremony to be attended by leading representatives of the Government of Dubai, regional business and financial leaders, market regulators, market participants and DGCX stakeholders.
From day one, DGCX will offer an uninterrupted trading window of more than thirteen hours to provide arbitrage opportunities against Far East, European and American markets. 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.
Framroze Pochara, Chief Executive of DGCX said, "It is remarkable that DGCX will go live with its trading operations within a year from the launch of the concept. To have achieved such a remarkable milestone is, in itself, extraordinary. It exemplifies the commitment and sheer hard work of the DGCX stakeholders and the implementation team. It also reflects the vision of the Government of Dubai in supporting this project from the outset."
"Meticulous planning, a practical approach, domain expertise, rapid decisions and seamless implementation, are the key factors that have enabled DGCX to achieve this in a record time. " Mr Pochara added.
DGCX opened its membership last June and received an overwhelming response that resulted in more than 270 applications being received in less than two months. Of these, some 200 have now been approved in principle by the DGCX Board, and 50 have completed all documentary requirements and been formally admitted to membership. Confirmed members are: Mashreq Securities; National Bank of Dubai; Standard Bank; Goldas (Turkey); Supama International; Swiss Gold; Shaheen Brokerage and Al Ghurair Giga as Broker Members and Kaloti; Lakhoo Metals; Bin Sabt and Yusuf Noonoo as Precious Metals Trade Members
"We estimate that we will have around 100 members trading on the DGCX markets on day one. This critical mass of members will ensure that the first day of trading will be meaningful, and will see active participation from across the globe. These numbers will increase within a very short period of time," Pochara added.
Various activities have been successfully completed to allow DGCX to reach launch in such a short space of time. These activities include: the formalisation of the exchange rules & regulations; setting up a top-notch technology infrastructure running on robust & proven application software provided by Financial Technologies; the recruitment, training & induction of DGCX team; the finalising of business rules relating to trading, clearing and settlement procedures; the recruitment of clearing banks, refiners, vaults and testers. A membership drive and members training were the other key goals accomplished during the year.
To begin with, 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. Following which a diversified range of commodities such as steel, marine fuel oil, freight rates and cotton will be introduced for trading.
-Ends-
About DGCX
The Dubai Gold and Commodities Exchange (DGCX) is a fully automated, screen-based, online commodities exchange scheduled to start live operations in November 2005. Strategically located in Dubai, the exchange is the first international commodities derivatives marketplace in the time zone between Europe and the Far East. A joint venture between the Dubai Metals and Commodities Centre, (DMCC), Financial Technologies (India) Limited (FTIL) and Multi Commodity Exchange of India Ltd. (MCX), the DGCX will be located in the DMCC free zone in the prestigious purpose-built AU (Gold) Tower. With its extensive portfolio of listed commodities including Gold, Silver, Freight, Cotton, Steel and Marine Fuel Oil, DGCX is set to offer an efficient electronic platform for the trading, clearing and settlement of a diverse range of commercially important derivative products.
For further information please contact:
Dubai Gold & Commodities Exchange
Rola Shalak
Senior Executive - Marketing
Mob: 97150 6451736
E-mail: rola.shalak@dgcx.ae
John Hobday
Citigate Middle East
Tel: 971 4 332 8832
Mob: 971 0 50 464 8706
john.hobday@citigateme.com
Manash Bhuyan
Citigate Middle East
Tel: 971 4 332 8832
Mob: 971 0 50 841 9631
E-mail: manash.bhuyan@citigateme.com
© Press Release 2005
