The Hindu Business Line : Dubai gold bourse in membership drive

DUBAI Gold and Commodities Exchange (DGCX) announced that it has received an overwhelming response in exchange membership, with over 230 applications, since it opened up for membership less than two months ago.

DGCX is a joint venture between Dubai Metals and Commodities Centre (an authority of the Government of Dubai) and Multi Commodity Exchange of India and Financial Technologies (India) Ltd.

DGCX has been accepting applications for Broker Membership and Precious Metals Trade Membership since late June 2005. Applications for first tranche membership closed on August 10.

Broker Membership entitles the holder to trade in all of DGCX's markets as principal and on behalf of clients. Trade Membership entitles the holder to trade as principal in a designated group of DGCX markets.

Mr Framroze Pochara, CEO of DGCX, said that the exchange had already received more than 230 applications for membership. "This is an overwhelmingly positive response from the marketplace and vindicates the business model that DGCX has developed."

"We have seen exceptionally strong interest from the UAE together with considerable interest from elsewhere. Applicants include leading banks, both international and regional, bullion dealers and brokers. Based on this response we are very confident of having a large, broadly based and geographically diverse market when we go live in November," he said in a release.

DGCX will trade seven days a week with trading hours extending from 10 a.m. to 11 p.m. to overlap with trading hours in the US, Europe and the Far East.

Its members will be able to connect to the trading system from anywhere in the world. The orders placed by members on the exchange will be routed to a central order book with automatic order matching algorithm. DGCX will commence trading in November 2005, first with gold futures, then silver futures and gold and silver options. These will be followed during 2006 and 2007 by a range of futures and options products in steel, fuel oil, freight rates, cotton and other commodities.

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