The Dubai Gold and Commodities Exchange (DGCX), the world’s newest electronic commodities derivatives exchange, has announced that it had received an overwhelming response with over 230 applications for exchange membership since it opened up for membership less than two months ago.
DGCX has been accepting applications for Broker Membership and Precious Metals Trade Membership since late June 2005. Applications for first tranche membership closed on August 10, 2005.
Broker Membership entitles the holder to trade in all of DGCX’s markets as principal and on behalf of clients. Trade Membership entitles the holder to trade as principal in a designated group of DGCX markets.
“This is an overwhelmingly positive response from the marketplace and vindicates the business model that DGCX has developed”, observed Framroze Pochara, DGCX’s Chief Executive.
“We have seen exceptionally strong interest from the UAE together with considerable interest from elsewhere. Applicants have included leading banks, both international and regional, bullion dealers and brokers. Based on this response we are very confident of having a large, broadly based and geographically diverse market when we go live in November”, he concluded.
DGCX will trade 7 days a week with trading hours extending from 10.00 am to 11.00 pm to overlap with trading hours in US, Europe and the Far East. DGCX members will be able to connect to the DGCX trading system from anywhere in the world. The orders placed by members on the exchange will be routed to a central order book with automatic order matching algorithm.
DGCX will commence trading in November 2005, first with gold futures, then silver futures and gold and silver options. These will be followed during 2006 and 2007 by a range of futures and options products in steel, fuel oil, freight rates, cotton and other commodities.
DGCX is a joint venture between Dubai Metals and Commodities Centre (an Authority of the Government of Dubai), Multi Commodity Exchange of India and Financial Technologies (India) Ltd.
Source: OCRA Worldwide