Dubai Gold, Commodities Exchange Set for 2005 Start

The Dubai Metals and Commodities Centre (DMCC) says the Dubai Gold and Commodity Exchange (DGCX), a new exchange to facilitate trading in gold and commodities, is due to start operations in the second half of 2005.

The DGCX, set up with the Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (India) Limited (FTIL), will be up and running after receiving the necessary regulatory approvals.

Transactions on the DGCX will take place on a state-of the-art electronic trading platform to be deployed by FTIL, in line with the system introduced for commodity exchange trading in India, which has been operating since 2003.

“The creation of the DGCX is a landmark achievement in the development of Dubai’s infrastructure, and will deliver an excellent value proposition for the global trading community,” said Ahmed bin Sulayem, DMCC’s Chief Operating Officer.

Meanwhile, the DMCC’s Executive Director for the Gold and Precious Metals sector, Colin Griffith, said: “Appropriately for the “City of Gold” the first contract listed on the exchange will be gold, but that will be quickly followed by other contracts.

“As the exchange develops and gains in prominence, we expect a significant amount of trade in silver, steel, freight, cotton and energy contracts, so that we can achieve a balanced portfolio with futures and options contracts available for all listed commodities.”