DGCX appoints Agricultural Bank of China as Market Maker for Shanghai Gold Futures Contract
Agricultural Bank of China to deliver all the functionality needed as a market maker
Dubai, UAE, 29 October 2016: The Dubai Gold and Commodities Exchange (DGCX) today 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.
This week DGCX also obtained a license from the Shanghai Gold Exchange (SGE) to list Shanghai Gold Futures, the first yuan-denominated gold future product to be offered outside of China using the Shanghai Gold Benchmark Price as its pricing mechanism.
Gaurang Desai, CEO of DGCX, said, “Having Agricultural Bank of China DIFC Branch join as market maker is an important milestone for our Shanghai Gold Futures contract. We are grateful for their partnership especially as they are able to bring much needed liquidity to the marketplace. This will ensure we have a strong start to trading. We are already seeing good demand from investors. As the first yuan-denominated gold future product to be traded and cleared outside of China allows us to further strengthen our offering, deepening our commitment to the gold market.”
Fang Min, SEO of DIFC Branch, at Agricultural Bank of China, added, “We are pleased to have joined the DGCX. They have shown great desire to work with us and the Shanghai Gold Exchange in their bid to support the gold future contract on their Exchange. We look forward to working in partnership with them going forward.”
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.
About DGCX:Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives.
DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. For more information: www.dgcx.ae