Monday, 9th May 2005 (2780 views)

The Dubai Gold and Commodities Exchange (DGCX), due to go live later this year, is reportedly planning to float a fully owned subsidiary to carry out the settlement of trades.

The new clearing house will be adequately capitalised and will as the buyer for sellers and seller for buyers on the exchange, according to David Rutledge, chief executive officer of the Dubai Metals and Commodities Centre (DMCC).

He told a seminar organised by the Institute of Chartered Accountants of India (ICAI), Dubai Chapter, that will be two types of membership of the DGCX; broker membership and trade membership.

The DMCC boss told Gulf News that an official confirmation of the appointment of the regulator has yet to be received by DGCX, adding: "We have been talking with DFSA, the regulator for Dubai International Financial Centre, and Esca on the scope of appointing one between them as the regulator for DGCX."

The DGCX, a joint venture between the Dubai Metals and Commodities Centre (DMCC), Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (India) Ltd (FTIL), is expected to be regulated by Emirates Securities and Commodities Authority (Esca).

The establishment of DGCX will help protect Dubai traders against price volatility, as well as bringing Dubai global recognition as an exchange and setting new price benchmarks for gold. New York and London are currently the only two global gold exchanges.

 

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