DGCX opens vital trading link to Chinese bullion

DUBAI — The Dubai Gold and Commodities Exchange (DGCX) announced on Saturday it has obtained a license from the Shanghai Gold Exchange (SGE) to list Shanghai Gold Futures on its exchange. It will be the first yuandenominated gold future product to be offered outside of China and it will use the Shanghai Gold Benchmark Price as its pricing mechanism.

The aim of the listing is to create further economic development and cooperation between China and Dubai through the precious metals trade. The gold futures product will offer global participants access to China and with that a deeper pool of liquidity as well as an enhanced gold pricing mechanism. Currently, DGCX bullion products offering include Spot and Futures Gold contact and an Indian Gold Quanto Futures.

DGCX and the SGE signed a licensing agreement, at a ceremony held at Dubai Week in China, Shanghai, in the presence of Abdulla Al Saleh, Under-Secretary of the UAE Ministry of Economy for Foreign Trade and Industry Affairs; Consul-General Ibrahim Al Mansouri, Consulate General of the United Arab Emirates to Shanghai; Jiao Jinpu, Chairman, Shanghai Gold Exchange; Gautam Sashittal, Chief Executive Officer, DMCC; and Gaurang Desai, CEO of DGCX.

At the signing ceremony for the licensing agreement, Gautam Sashittal, Chief Executive Officer, DMCC and Board Director of DGCX, said: “It is an honour to be chosen as the first international exchange to list the Shanghai Gold Futures contract. We are a gateway to the Middle East, Africa and Europe where a significant portion of gold traders, miners, jewelers and financiers reside. This contract will have far-reaching appeal to those wanting access to a product with deeper pools of liquidity and a pricing mechanism that is fair and transparent.“