Spot Gold

  • Dubai is known as the city of gold. Some of the traditional issues for the Gold market here in Dubai are price discovery and basis risk management. The introduction of a spot gold contract on DGCX will create significant value to the physical market participants, enabling them to manage their risk appetite and facilitate a combination of strategies that can be deployed on both futures and spot platform to provide the desired yield.

    One of the key benefits the DGCX Spot Gold Contract provides for the bullion trading industry is facilitating netting benefits on a single platform. Participants across the spectrum have better counterparty risk management tools and this provides a platform to gold investors to derive another revenue stream for their investments. Once launched and established, the DGCX spot Gold contract will attract participants from overseas and locally due to availability of a regionally relevant price benchmark.

    • Contract size of 32 troy ounces in line with industry standards.
    • USD denominated, regulated Gold spot contract on an established platform
    • Tick size of USD 0.10 per Troy Ounce
    • Option to take delivery or roll-over to the next day
    • Robust risk management controls including delivery limits and Span based margining
    • Participate in gold trade in one of the largest bullion trading hubs in the world
    • Transparent price discovery in gold in Dubai
    • Take out the basis risk from gold trading in Dubai
    • Accept reputable gold brands for delivery
    • Available on robust trading and clearing platform subscribing to global best practices and standards
    • Physical traders get automatically netted off against their physical exposure on DGCX
  • ContractParameters
    Contract Symbol DGSG
    Underlying Gold
    Contract Size 32 troy ounces. (1 kg)
    Notional Contract Value 32xGold Price quote in USD pr troy ounces
    Trading Currency USD
    Settlement Currency USD
    Price Quote USD per Troy Ounces
    Tick Size USD 0.1
    Tick Value USD 3.2
    Settlement Basis Physical Delivery
    Automatic Rollover Mechanism On any given trading day, unless a notice of delivery intent has been recieved by DCCC prior to 20:15 Hours UAE time, all open positions will be marked to market and automatically carried forward into the next trading session. For all carried forward positions a rollover fee will be applied
    Final Cash Settlement Price As published by DGCX in line with relevant Rules, Bylaws and notices published and updated from time to time
    Trading Days Monday to Friday
    Trading Hours 07:00 - 20:00 Hours UAE time (GMT+4)
    Max Order Size 200 lots
    Minimum Delivery Size 1 Lot
    Delivery Notice Before 20:15 Hours UAE time (GMT+4) on trading day
    Initial Margin based on SPAN USD 1,200 per contract, subject to change.
    Delivery Margin 5 times the Initial Margin, subject to change
    Daily Price Movement limit No Price Limit*
    Note 1*: For the avoidance of "fat finger" errors, price band shall be USD 20 from previous settlement price e.g. if previous settlement price is USD 1,200 then the price band is from USD 1,180 to USD 1,220. If price breaches the daily price movement limit, trading in particular contract shall continue, with the new trading price range without any cooling period
    Delivery Mechansim Details
    Delivery Unit 31.99 troy ounces (1kg) cast in one bar, accompanied by the original Refiner's Certificate
    Deliverable Quality 0.995 Fineness
    Delivery Logic Random allocation
    Delivery Days T+2 (Monday to Friday)
    Delivery Fee Rates applicable and to be published on the DGCX/DCCC website.
    Delivery Method Instrument & Location 100% Cash via DCCC, 100% physical Gold via DMCC Tradeflow Warrant at approved vault locations within the Emirate of Dubai.
    Pay-In of Funds / Delivery-In of Gold Pay in before 10:00 Hours UAE time (GMT+4) on T+2. Pay out after 12:00 Hours UAE time (GMT+4) on T+2.
    Exchange of Futures for Physical (EFP) EFP (Exchange of Futures of Physical) - a mechanism to exchange Futures for Spot, and Spot for Futures will be available
    Approved CMI / Assayers Names as listed on the DGCX/DCCC websites
    Approved Brands Names as listed on the DGCX/DCCC websites
    Rollover Fee, per lot US$ 0.96 per lot charged to the holders of positions that have been rolled over. The rollover fee will be published by DCCC from time to time. The corporation could levy different rollover fees for the long and short positions
    Daily Settlement Price As per DGCX Notice # COMP-2008-014 dated April 22, 2008
    Position Limits As determined by Exchange from time to time
    Delivery Limits Clearer Member level limit - 50% of Open Interest OR 125 Kgs whichever is lower. Trading Member level limit - 20% of Open Interest or 75 Kgs whichever is lower. Client level limit - 10% of Open Interest OR 25 Kgs whichever is lower. All above conditions and parameters are subject to change by DCCC from time to time and will be published on our website.

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