Nov. 11, 2004
Asia Times
DUBAI - India, the world's largest consumer of gold, and Dubai on Tuesday announced the formation of the Dubai Gold and Commodity Exchange (DGCX) which is expected to begin operations in the second half of 2005.
The Dubai Metals and Commodities Center (DMCC), the Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (India) Limited (FTIL) signed a memorandum of understanding to launch the exchange which will be based here.
"The creation of the DGCX is a landmark achievement in the development of Dubai's infrastructure, and will deliver an excellent value proposition for the global trading community," said Ahmed bin Sulayem, DMCC's chief operating officer.
He said transactions on the DGCX would be done on a state-of the-art electronic trading platform to be deployed by FTIL, in line with the system introduced for commodity exchange trading in India.
"Appropriately for the 'City of Gold' the first contract listed on the exchange will be gold, but that will be quickly followed by other contracts," DMCC's executive director for the gold and precious metals sector Colin Griffith said.
"As the exchange develops and gains in prominence, we expect a significant amount of trade in silver, steel, freight, cotton and energy contracts, so that we can achieve a balanced portfolio with futures and options contracts available for all listed commodities," he said.
Echoing Griffith's optimism, Jignesh Shah, MCX managing director and FTIL chairman, commented, "This landmark achievement unfolds the real potential of the Indian technology expertise and the domain knowledge of its human intellectual capital."
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