The Dubai Gold and Commodities Exchange (DGCX) has announced that it has been granted ‘Recognized Body’ status by the Dubai Financial Services Authority (DFSA). The status covers both the exchange, and the Dubai Commodities Clearing Corporation (DCCC), the DGCX’s central counterparty operating unit.
The new status allows firms domiciled in the Dubai International Financial Centre (DIFC) and licensed by the DFSA, to become members of the DGCX. As members, financial firms can access directly all products listed for trade and cleared by the DGCX.
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According to the DGCX, they believe that the net result of the recognition will be an increase of local firms becoming members and trading with the exchange; thus boosting liquidity of listed derivative products. A global leader in Indian rupee trading, as well as a regional center for gold derivatives liquidity, the DGCX has been active in launching other currency and metal related products which could get a boost from new members accessing the exchange.
Commenting on the news and its expected positive effects, Gaurang Desai, Interim CEO of DGCX, stated publicly that “We are extremely pleased to receive this recognition from the DFSA, which will enable us to offer the full range of our listed derivatives products in all asset classes to the established and fast-growing DIFC community. This recognition will expand our membership base and further strengthen our liquidity pool while bringing more diverse participants into the DGCX market. We look forward to extending our network of regional and global partnerships through institutions based within the DIFC.”