The Middle East's first commodities derivatives exchange, the Dubai Gold and Commodities Exchange (DGCX), went live on Tuesday. The opening of DGCX for derivatives trading marks the entrance of Dubai into the international arena for derivative trading, along with cities like New York, Chicago, London and Tokyo.
The Dubai Gold & Commodities Exchange (DGCX) is a joint venture between the Dubai Metals and Commodities Centre (DMCC), Multi Commodities Exchange of India Ltd (MCX) and Financial Technologies (India) Limited (FTIL). The Exchange has been developed to facilitate the trade of gold and commodities.
The DGCX will commence trading with a one-kilogram gold futures contract, offering a thirteen-hour trading window to compensate for global time differences.
Crown Prince of Dubai and UAE Defense Minister General Shaikh Mohammed bin Rashid Al Maktoum officially inaugurated the exchange on Monday at an event attended by regional and international business leaders, market participants, DGCX stakeholders and international players in the global commodities market, according to Khaleej Times.
Framroze Pochara, chief executive of DGCX, announced at the event that "November 22 will be a momentous day for Dubai, the global commodities trading community and the wider business community. Tomorrow, the world's newest exchange and the Middle East's first electronic derivatives exchange will be trading."
He added, "It is only a befitting tribute to Dubai's status as the 'City of Gold' that we are starting the first trade on the exchange in gold futures."
Members will be able to trade in six months ahead for gold futures, while trading silver futures and gold and silver options will be available during first quarter of 2006.
DGCX is set to offer a varied platform for trading, with its extensive portfolio of listed commodities including gold, silver, freight, cotton, steel and marine fuel oil.
© 2005 Mena Report (www.menareport.com)
