Dubai Multi Commodities Centre (DMCC) and Financial Technologies Group (FT Group) today announced that DMCC has purchased a 1 per cent stake in the Dubai Gold and Commodities Exchange (DGCX) from FT Group for US$ 12.5 million.
Following the 1 per cent sale by FT Group, DMCC now holds 51 per cent and FT Group holds 49 per cent in DGCX.
Commenting on the transaction, Mr. Jignesh Shah, Founder CEO of FT Group said, “To date, DGCX has proven to be a successful venture and DMCC, as a Government of Dubai Authority with extensive relationships with the commodity sector in the region, is the appropriate venture partner to hold the majority interest in DGCX. FT Group remains fully committed to ensuring that DGCX achieves its potential role amongst the world’s leading commodity exchanges.”
Dr. David Rutledge, Chief Executive Officer of DMCC said, “This transaction testifies to DMCC’s total confidence in, and commitment to, DGCX.”
“DMCC has a productive relationship with FT Group and we look forward to working with them to fully exploit the full potential of the exchange. The FT Group technology, as the ‘engine room’ of DGCX, has been a cornerstone of its success to date and will continue to underpin its future growth,” Dr. Rutledge continued.
DGCX is an electronic futures and options exchange which utilizes trading, clearing and settlement technology developed by FT Group. DGCX presently lists futures contracts in gold, silver, currencies and fuel oil. It has recently announced the imminent launch of futures contracts in steel, and options contracts on gold. DGCX has also foreshadowed the future listing of various agricultural, metal and energy products.
