By: Amr Adel
Dubai – Mubasher: The Dubai Gold and Commodities Exchange (DGCX) on Sunday announced launching the DGCX Shanghai Gold Futures (DSGC), after signing of a “landmark deal” with the Shanghai Gold Exchange (SGE) last year.
The announcement was made at the Dubai Precious Metals Conference (DPMC) on Sunday.
“The yuan-denominated contract, DSGC, marks the first-ever usage of the Shanghai Gold Benchmark Price in international markets,” according to a statement.
The introduction of DSGC opens “a vital trading link”, providing investors worldwide with access to the largest bullion market.
The DSGC is connected to more than 10 million institutional customers, 8.3 million individual customers, and 55 certified gold vaults, the statement showed.
“The listing of the Shanghai Gold Futures contract on DGCX is a landmark development. With the launch of this contract, all key bullion price indicators are accessible on a single platform, with significant margin efficiencies. We are delighted to further this partnership with the Shanghai Gold Exchange, today the largest bullion market in the world," stated DGCX chairman Ahmed Bin Sulayem.
Meanwhile, speaking at the conference, DGCX CEO Gaurang Desai noted that the DGCX was the “only exchange in the world to introduce a Chinese gold-backed derivative product in international markets.”
“By trading DSGC, members and participants of the DGCX can access the Chinese bullion market which until now was difficult to access for foreign participants. The product will also open doors for other traders who don’t currently trade on DGCX but are keen to access the Chinese bullion market,” Desai revealed.
Quoted and traded in Yuan, the DSGC contract has settlement prices derived from the SGE (licensee). The contract's size is 1,000 grams (1KG) with the contract price quoted in CNH per gram.
“The listing of Shanghai Gold Futures on DGCX which has a wide international footprint and well-established local clearing capabilities for precious metals in the Middle East, bodes well for the UAE, particularly Dubai, which is already a strategic gold trading hub and a key point in the ‘Belt and Road’ initiative,” a statement by the exchange showed.
The Shanghai Gold Futures were offered on the DGCX on 10 March 2017.
