DGCX Spot Gold Contract (DGSG) – Shari’ah Compliant

  • DGCX Spot Gold Contract (DGSG) - Shari’ah Compliant

    Gold is one of the oldest and most well-known products used for investment, hedging and trading. Investments in gold have traditionally been used as a hedge against inflation and as a store of value.

    The DGCX Spot Gold contract – Shari’ah compliant, has been certified by renowned Shari’ah scholars in compliance with the Shari’ah principles for the ownership of gold. Gold is less volatile than other major Islamic products available in the market including Equity Indices, REITs and the Takaful index. Although, traditionally Gold has performed better on a medium to long term basis. The DGCX Spot Gold contract – Shari’ah Compliant, provides an opportunity for Islamic funds and investors to diversify their portfolio efficiently by investing in Gold.

    • Compulsory physical delivery of allocated and segregated 1 Kilogram gold bars from approved Refineries
    • Recognised, regulated and fully Shari’ah compliant.
    • Transparent pricing and defined delivery intention, revocation and substitution processes and timelines
    • Traded in USD with a tick size of USD 0.10 per troy ounce and Tick value of USD 3.20 per lot
    • Region’s first Exchange traded Shari’ah Spot Gold contract, certified by reputed Shari’ah advisory board based on established Shari’ah gold standards
    • Enables efficient diversification of Islamic investment portfolios through Shari’ah compliant ownership of gold
    • Traded on a federally regulated and risk managed platform offering safety and price transparency
    • Compulsory physical delivery under approved Shari’ah structure
    • Only specific DGD bars accepted as deliverable brands under the contract
    • End to end solution for physical storage and delivery handling as per participants’ request
  • Contract Specifications

    Contract Type Shariah Compliant
    Contract Name Spot Gold Shariah Compliant
    Contract Symbol DGSG
    Underlying 1kg Allocated and segregated Gold bars with a minimum purity of .995
    Contract Size 32 Troy Ounces (approx. 1kg)
    Notional Contract Value 32 x Price
    Trading Currency USD
    Settlement Currency USD
    Price Quote US Dollars per Troy Ounce
    Tick Size US$ 0.10
    Tick Value US$ 3.20
    Settlement Basis Physical Delivery
    Final Cash Settlement Price (FCSP) FCSP shall be the Daily Settlement Price on each SGIN Day
    Spot Gold Intention (SGIN) Days Exchange Business Days
    Trading Days Exchange Business Days
    Trading Hours 07:00 – 20:00 Hours Dubai time
    Max Order Size 200 Lots
    Wholesale Trades Block Trade minimum size threshold: 5 lots. EFP/EFS also available. Trades must be submitted 15 minutes after execution
    Delivery Process Delivery through DMCC DGR system. On T+1 pay-in of funds and delivery-in of Gold Warrant to DMCC by 10:00. Pay-out of funds and delivery-out of Gold Warrant between 12:00 and 14:00
    Delivery Margin See link: www.dgcx.ae/initial-margins
    No Cancellation Range See link: www.dgcx.ae/price-limits