The UAE’s key futures marketplace, the Dubai Gold and Commodities Exchange (DGCX), today announced the signing of a Memorandum of Understanding (MoU) with the Chinese Gold and Silver Exchange Society (CGSE) in Hong Kong, the first MoU that CGSE has signed with an exchange in the Middle East.
The partnership will strengthen DGCX and CGSE global collaboration and support opportunities that will mutually benefit the exchanges. The agreement is designed to facilitate closer cooperation within the precious metals markets. It additionally will support the positions of both exchanges as benchmark reference pricing venues, and further establish them as prime centers by connecting Asia and the Middle East.
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DGCX, the only derivatives market in the Middle East, added that the purpose of the memorandum is to educate their respective members on existing and new products and explore other areas of cooperation. Furthermore, it should help identify the best models to increase trading activities and improve their respective markets’ liquidity.
The DGCX- CGSE MoU is the latest in a growing number of deals between the UAE and Hong Kong as both countries strengthen bilateral financial cooperation and promote trade and investment.
Steven Chan Sheung Chi, President of the CGSE, commented: “CGSE’s mission is not only to develop its role as China’s offshore hub for precious metals trading but also to strengthen cooperation with ASEAN countries. We have a broad ranging strategy in support of the Belt and Road Initiative that satisfies the demand in Dubai and that will benefit both parties. As Dubai is in the route of the Belt and Road, we shall work together to develop a proprietary product satisfying both parties’ need.”
Gaurang Desai, CEO of DGCX, added: “2016 has been a year of forging partnerships for us, especially among leading Chinese trading bodies. We are pleased to join forces with CGSE and work towards strengthening our links with the Chinese precious metals market. At DGCX, we adopt an ‘inside out’ and ‘outside in’ approach where we offer regional products to global investors and global products to regional investors. The MoU embodies this approach, as we grow our offerings and expand our reach to cater to different traders and investors across the globe.”