DGCX ends largest physical settlement of $25 million

Written by Commodities Bureau | Mumbai, Oct 8 | Updated: Oct 9 2008, 06:27am hrs
Dubai Gold and Commodities Exchange (DGCX) Wednesday announced the successful completion of its largest-ever physical settlement of gold and steel rebar futures contracts, valued at $25.20 million, by the Dubai Commodities Clearing Corporation (DCCC).

The transaction is a testimony to the efficient and robust settlement framework provided by DCCC, a wholly owned subsidiary of DGCX. It also reinforces the Exchange's position as a secure marketplace used by industry participants to source their gold and steel rebar requirements.

The settlement involved the physical delivery of 908 kgs of gold and 40 tonne of steel rebar for October 2008. The transaction saw participation by prominent banks and industry players of the physical market.

Commenting on the occasion, Malcolm Wall Morris, chief executive officer, DGCX, said the largest ever physical settlement of gold and steel rebar futures reflects the confidence that members and their customers place in DGCX, especially during the current climate of economic uncertainty and increased counterparty risk.

DGCX has evolved into the leading derivatives exchange in the Middle East region. The recent $25.20 million physical settlement demonstrates that this is backed by the resilient delivery system of DCCC, enabling participants to settle large transactions," he said.