Shanghai Gold Futures to list on DGCX

Dubai-UAE (Oct30)  The Dubai Gold and Commodities Exchange (DGCX) said it has obtained a licence from the Shanghai Gold Exchange (SGE) to list Shanghai Gold Futures on its exchange.

It will be the first yuan-denominated gold future product to be offered outside of China and it will use the Shanghai Gold Benchmark Price as its pricing mechanism.

“We have been greatly involved with key players in the Chinese derivatives marketplace over the past few years, and are looking to strengthen these links even more. Associating ourselves with such dynamic markets takes us a step further along the path of substantial growth and expansion, both regionally and internationally,” Gaurang Desai, CEO, DGCX, said in a statement.

The aim of the listing is to create further economic development and cooperation between China and Dubai through the precious metals trade. The DGCX also announced Agricultural Bank of China (ABC) DIFC Branch has become the first market maker for the Shanghai Gold Futures contract listed on it exchange. ABC is China’s third largest lender by assets and is one of the first participants in the precious metal business in China and is known to hold leading positions all the time.

As part of the agreement, ABC DIFC Branch will offer bid and offer prices with a minimum spread and maximum size and maintain margins and collaterals.

Source: GulfNews