Dubai, UAE, 12 December 2016: The Dubai Gold and Commodities Exchange (DGCX) today signed a Memorandum of Understanding (MoU) with the Chinese Gold and Silver Exchange Society (CGSE) in Hong Kong. As leading markets for precious metals trading, this collaboration will enable both DGCX and CGSE to deepen their penetration into emerging markets and further develop the precious metals markets in Asia and the MENA region.
Both CGSE and DGCX serve their domestic and regional client bases throughout Hong Kong, North East Asia, the GCC and the Indian Sub-continent, and this agreement recognizes the significant opportunities to meet the evolving needs of investors in China and the Indian Sub-continent – two of the world’s largest consumers of precious metals.
The MoU will enable CGSE and DGCX to cooperate within the precious metals markets, with a view to generating greater benefits for their market participants. The MoU will also pave the way for enhancing the positions of both Exchanges as benchmark reference pricing venues, and further establish them as prime centers by connecting Asia and the Middle East.
Gautam Sashittal, Chief Executive Officer, DMCC and Board Director of DGCX, said:
“At DMCC, the parent company of DGCX, we have successfully established ourselves as Dubai’s global gateway for trade with a strong focus on commodities, including precious metals. This partnership with CGSE marks a natural next step in achieving our underlying vision which is to connect markets and facilitate more global trade. We look forward to collaborating with the CGSE to further support the economic development agenda of China and the UAE.”
Steven Chan Sheung Chi, President of the CGSE, said: “CGSE’s mission is not only to develop its role as China’s offshore hub for precious metals trading but also to strengthen cooperation with ASEAN countries. We have a broad ranging strategy in support of the Belt and Road Initiative that satisfies the demand in Dubai and that will benefit both parties. As Dubai is in the route of the Belt and Road, we shall work together to develop a proprietary product satisfying both parties’ need.”
Both the Exchanges will collaborate to identify the best models to increase trading activities between their markets, improve their respective markets’ liquidity and enhance the efficiency of delivery mechanisms. DGCX and CGSE will also work together to educate their respective members on existing and new products and explore other areas of cooperation for the further development of the precious metal markets in Hong Kong and Dubai.
Gaurang Desai, Chief Executive Officer of the DGCX, concluded: “2016 has been a year of forging partnerships for us, especially among leading Chinese trading bodies. We are pleased to join forces with CGSE and work towards strengthening our links with the Chinese precious metals market. At DGCX, we adopt an ‘inside out’ and ‘outside in’ approach where we offer regional products to global investors and global products to regional investors. The MoU embodies this approach, as we grow our offerings and expand our reach to cater to different traders and investors across the globe.”
About DGCX:Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives.
DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. For more information: www.dgcx.ae