Dubai: The Dubai Gold & Commodities Exchange (DGCX) in partnership with RAKBANK, today announced plans to launch a Mini-Gold Futures product, offering investors the chance to trade gold in smaller denominations. The contract will be the first-of-its-kind, and is in response to feedback from market participants that emphasized a strong desire from smaller investors to increase their exposure in the precious metals market.
The Mini-Gold product will be made available on the DGCX platform and cleared by the Dubai Commodities Clearing Corporation (DCCC). Initially, delivery will take the form of electronic transfer at RAKBANK, although as the contract develops it is envisaged that the additional capability of physical redemption will be added. The launch of the Mini-Gold contract is targeted for Q3 subject to the appropriate approvals.
Les Male, CEO of DGCX, said: “The DGCX’s decision to expand its precious metals portfolio is a direct result of the partnership we forged with RAKBANK in 2017. We are delighted to have built on this relationship, and excited to announce the launch of the MENA’s first exchange listed Mini-Gold product together. There is a strong desire to own gold in the UAE, but at present, it is difficult for smaller investors to buy Gold Futures given the large size of the contracts. This significant move will open up access for them and permit accumulation of Gold as part of their savings, while ultimately contributing to the development of the region’s bullion market.”
Vikas Suri, Managing Director of Treasury at RAKBANK, said: “We were very pleased to join hands with the DGCX and DMCC two years ago to start work on the development of a platform that would allow customers, large and small, from across the region to acquire gold at competitive prices with just a click of a button through an integrated Digital Banking platform. I am delighted to note that this vision has now become a reality and that the end product of a significant amount of hard work, commitment and determination from all sides has culminated in the agreement to launch the DGCX Mini-Gold product. This is part of our exciting RAKGOLD project to create the UAE’s first full service, end to end bullion banking offering and we look forward to supporting the new contract as both a market maker and gold clearer.”
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About DGCX:
Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives and financial infrastructure. DGCX is an electronic commodity and currency derivatives exchange with over 175 members from across the globe, offering futures and options contracts covering the precious metals, energy, equities and currency sectors. DGCX is a subsidiary of DMCC (Dubai Multi Commodities Centre), a Dubai Government Authority for trade, enterprise and commodities. For more information: www.dgcx.ae
DGCX also owns and operates the region’s largest and only multi-asset Clearing House – Dubai Commodities Clearing Corporation (DCCC). DCCC is federally regulated by the Securities & Commodities Authority (SCA) and is recognized as a Third-Country CCP by European Securities Markets Authority (ESMA) with over 60 clearers from across the globe. For more information: www.dccc.co.ae
About RAKBANK:
RAKBANK, also known as The National Bank of Ras Al Khaimah (P.S.C), is one of the UAE’s most dynamic financial institutions. Founded in 1976, it underwent a major transformation in 2001 as it rebranded into RAKBANK and shifted its focus from purely corporate to retail and small business banking. In addition to offering a wide range of Personal Banking services, the Bank increased its lending in the traditional SME, Commercial, and Corporate segment in recent years. The Bank also offers Islamic Banking solutions, via RAKislamic, throughout its 36 branches and its Telephone and Digital Banking channels. RAKBANK is a public joint stock company headquartered in the emirate of Ras Al Khaimah and listed on the Abu Dhabi Securities Exchange (ADX). For more information, please visit www.rakbank.ae or contact the Call Centre on +9714 213 0000. Alternatively, you can connect with RAKBANK via twitter.com/rakbanklive and facebook.com/rakbank.
For further information, please contact:
Jonathan Fisher
Weber Shandwick PR
Tel: +971 (0) 4 445 4222
Email: JFisher@webershandwick.com
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