Shanghai Gold Futures
China is known as the one of the biggest gold producing and consuming countries in the world. It is also one of the top two importers of gold globally. Traditionally, China has been deficient in gold investments at both the sovereign and investor level. Gold consumption in China has risen significantly with consistent purchases by the Government of China. The government has also encouraged the Chinese public to invest in gold and use it as an instrument for their savings.
Dubai has historically been a central hub for gold trading in the MENA region. The China Belt and Road initiative also passes through the region and holds strategic value for both China and the UAE. A large part of the trading community in the Americas, Europe and Asia are keen to participate in Chinese physical and derivative markets. At the same time the Chinese government wants to increase the acceptance of Chinese Yuan and the Chinese Gold price benchmark prices globally. The launch of the DGCX Shanghai Gold Futures Contract provides all stakeholders including the government in China, UAE and Dubai, market participants, SGE and DGCX a suitable opportunity to progress together on the chosen path with one singular goal.
- Tracks and prices the largest Gold market in the world by production and consumption
- Settlement based on the Chinese Gold benchmark Price as declared by the Shanghai Gold Exchange (SGE)
- Traded and Cash settled in Chinese Yuan (CNH)
- Zero Capital Gains Tax and Zero Corporate Tax
- Contract size of 1000 grams (1kg); Tick Value of CNH 10
- Efficient margining for optimal leverage
- Trade your view on the Chinese Gold market
- Trade the spread between Shanghai Gold and correlated Gold products listed on DGCX
- The margin offsets by DCCC for inter-commodity spreads offers greater capital efficiency
Contract Parameters Contract Type Future Contract Name Shanghai Gold Contract Symbol DSGC Underlying 1,000 gram (1kg) Gold, not lower than 0.9999 purity Contract Size 1,000 gram (1kg) Notional Contract Value 1,000 x Price Trading Currency CNH Settlement Currency CNH Price Quote CNH per gram Tick Size CNH 0.01 Tick Value CNH 10 Settlement Basis Cash Settled Final Cash Settlement Price (FCSP) FCSP shall be the Shanghai Gold Benchmark Price PM as published by SGE on Last Trading Day Last Trading Day (LTD) 15th calendar day of the expiring month Trading Days Exchange Business Days* Trading Hours 07:00 – 23:55 Hours Dubai time Trading Months February, April, June, August, October and December New Contract Listing Business Day immediately following the Last Trading Day Max Order Size 200 Lots Wholesale Trades Block Trade minimum size threshold: 50 lots. EFP/EFS also available. Trades must be submitted 15 minutes after execution No Cancellation Range See link: www.dgcx.ae/price-limits
Expiry Month Expiry Code Last Trading Day Oct'18 DSGC-20181015 15 Oct 2018 Dec'18 DSGC-20181217 17 Dec 2018 Feb'19 DSGC-20190215 15 Feb 2019 Apr'19 DSGC-20190415 15 Apr 2019 Jun'19 DSGC-20190617 17 Jun 2019