The Hindu Business Line : MCX, Financial Technologies, DMCC join hands

THE Dubai Metals and Commodities Centre (DMCC), Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (India) Limited (FTIL) on Tuesday announced the formation of the Dubai Gold and Commodity Exchange (DGCX), a new exchange, developed to facilitate the trade of gold and commodities. Subject to receiving the necessary regulatory approvals, the exchange will commence operations in the second half of 2005.

The announcement follows the signing of an official Memorandum of Understanding between the DMCC, MCX and FTIL to work together towards the creation of Dubai's newest exchange, the DMCC said in a statement on Tuesday.

The transactions on the DGCX will take place on an electronic trading platform which will be deployed by FTIL, in line with the system introduced for commodity exchange trading in India, and which has been successfully in operation since 2003. DMCC's Executive Director for the Gold and Precious Metals sector, Mr 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."

The DMCC has been rolling out a number of new initiatives focussed on the trading of physical commodities, including the Dubai Commodity Receipt, the Dubai Tea Trading Centre and the Dubai Diamond Exchange, to enhance the current market infrastructure for the gold, commodities, and diamond sectors in Dubai.

The Multi-Commodity Exchange of India (MCX) is an independent and de-mutualised exchange with permanent recognition from Government of India for facilitating online trading, clearing and settlement operations for commodity futures markets across the country.

Key shareholders of MCX are Financial Technologies (India)Ltd., State Bank of India, (India's largest commercial bank), Union Bank of India, Corporation Bank, Bank of India and Canara Bank. Executives at both exchanges emphasised that India and Dubai have enjoyed a close collaborative working relationship across the full commodity range for many years, and they looked forward to continuing that partnership in the future.

The Dubai Metals and Commodities Centre (DMCC) was created in 2002 as part of a strategic goal by the Dubai Government to establish a commodity market. It provides the market infrastructure that brings together a wide range of commodities activities, and is committed to serve the needs of participants in the gold, diamonds and commodities markets.

More Stories on : Commodity Exchanges | Gold & Silver

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
MCX, Financial Technologies, DMCC join hands — Dubai Gold and Commodity Exchange formed

Remedy worse than malady?

Century Agrotech bets big on jatropha to fuel growth

Seafood Q1 exports dip

Maharashtra farmers, a crossed lot

Workshop on power to farms

Rubber static

`TN admits to water diversion'

SSP sector seeks hike in subsidy as input costs rise

Norms for minor forest products export soon

TN: Rain-hit Delta region farmers seek relief