Among other things, the MOU, signed by CBOT President and CEO Bernard Dan and DGCX Chairman David Rutledge contemplates the investigation of cooperative action between the two exchanges in relation to spread margining for certain commodity contracts and permits sharing of information.
CBOT President and CEO Bernard Dan said, “Entering into an agreement with the DGCX, on the eve of its debut demonstrates our faith in the validity of the exchange. The DGCX is expected to play a critical role in bringing risk management and price discovery to this fast growing region. We look forward to developing and growing our relationship with the DGCX.”
Framroze Pochara, DGCX Chief Executive said, “As the world’s newest commodities exchange, DGCX is delighted to associate in this way with CBOT, the exchange on which modern futures trading first emerged. We are confident that this MOU will lead to the development of initiatives that will be of real commercial benefit to our respective market participants.”
The DGCX is expected to commence trading on November 22, 2005 with a 1 kilogram gold futures contract, to be followed by silver futures, gold and silver options and a range of other commodities contracts. The CBOT offers its Precious Metals Complex (full-size Gold (100 oz.) and Silver (5,000 oz.) futures contracts, mini-sized Gold (33.2 oz.) futures contracts and CBOT mini-sized Silver (1,000 oz.) futures contracts) electronically. Its Gold complex achieved several open interest and volume records in October.
