The Dubai Gold & Commodities Exchange (DGCX) has signed a Memorandum of Understanding (MoU) with the Multi Derivatives Exchange Nepal (MDX) to enhance their respective commodity trading offering.
MDX is a proposed derivatives exchange which has applied for a regulatory license from the Securities Board of Nepal (SEBON) to operate a commodities and derivatives exchange.
Under the agreement, both exchanges will work closely together in areas of shared interest. This includes trading, clearing, settlement, delivery of contracts, compliance and surveillance, contract design and pricing, technology, and risk management, the statement said.
In order to further the scale of the collaboration, as well as promote strong cooperation between the DGCX and MDX, the exchanges will host workshops and meetings.
Commenting on the MoU Les Male, the CEO of DGCX, said: “This agreement comes in accordance with our vision to expand our knowledge base, and foster more collaboration in the industry and across borders.”
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“At DGCX, we are always looking for innovative ways to develop and enhance our offering, and we are confident that this partnership will lead to a successful and fruitful outcome that is mutually beneficial to both parties.”
MoU signed by DGCX CEO and coordinator of MDX
DGCX’s CEO signed the agreement at the exchange’s office in Dubai with Dipak Raj Pandey, Coordinator of MDX. The MoU was signed at a ceremony attended by senior representatives from both sides.
“DGCX and MDX share a common goal to follow international best practices and provide innovative derivatives products to our members,” added Dipak Raj Pandey.
“The signing of this MoU is a significant step towards productive collaboration, and will allow us to leverage each other’s strengths, knowledge and experiences.”
DGCX is a financial and commodities derivatives exchange. In addition to commodities, the exchange facilitates trading in other assets such as foreign exchange (forex). As Finance Magnates reported, in 2018, G6 currencies, as well as the Indian rupee (INR), were the most traded assets on the exchange.
For INR, trading volumes jumped by 25 percent on a year-on-year basis. This surge was mainly driven by an increase in hedging appetite due to volatile markets. The trading volumes for G6 futures increased by nine percent when measured against 2017, hitting 595,491 contracts.