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Dubai Gold and Commodities Exchange (DGCX), the Middle East’s leading commodities Exchange, today signed a strategic alliance with East Asia's premier futures and commodities exchange - the Shanghai Futures Exchange (SHFE).
The partnership will facilitate deeper cooperation in areas such as product development, clearing and technology, adding a new dimension to the information and expertise that already exists in the UAE and the People’s Republic of China. The Memorandum of Understanding (MOU) signed by the two exchanges caps an initiative that began last year.
The pace of growth at DGCX and the breadth of its portfolio positions it as a natural regional partner for the Shanghai Futures Exchange, said its Chairperson, WANG Li-Hua,"We are pleased to partner with the Middle East's premier derivatives exchange. In addition to pioneering derivatives trade in the region, the Exchange offers a choice of alternate investments to a region with liquidity."
The SHFE has been as innovative as its Gulf partner. With approval from the China Securities Regulatory Commission, SHFE started the trading of Gold futures contracts in January 2008. A second important offering, SHFE Zinc futures, was listed on the exchange in March 2007, and quickly gained recognition by being awarded the `most popular futures product in 2007’ by Futures and Options World. The exchange trades copper, which is now one of the world’s largest contracts as well as futures in aluminium, natural rubber and fuel oil.
Nishat Bandali, Chief Marketing Officer, DGCX, reiterated that stepping up awareness of DGCX in the world's fastest growing economy is a key gain. The UAE is now China's second largest trade partner in the Gulf with 2007 trade volume at AED 74.9 billion and the DGCX-SHFE alliance is set to further enhance this trade. “The tie-up reflects our continuing efforts to increase awareness of the products that DGCX offers. This opportunity will also allow both regions to leverage their knowledge and expertise in the energy and metals arena,” said Bandali.
The MOU between DGCX and SHFE will work towards developing synergies between the two exchanges and understanding the way in which industries can cover risk at all stages.
"In an effort to enhance value for traders, DGCX is establishing strategic ties with leading players in the derivatives sphere," explained Wall Morris. Such alliances with the world's leading commodities exchanges will serve as an enabler for the future success of DGCX.
In August 2007, DGCX signed a memorandum of understanding with the Tokyo Commodity Exchange (TOCOM), the world's leading bullion and energy exchange, aimed at developing cooperation and information sharing. In January 2008, DGCX and the Malaysian exchange, Bursa Malaysia Berhad, established ties aimed at developing the derivatives markets in Malaysia and the UAE.
