Dubai Gold and Commodities Exchange (DGCX), the Middle East’s leading commodities Exchange, on Wednesday 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) 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. The MOU signed by the two exchanges caps an initiative that began last year.
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 pace of growth at DGCX and the breadth of its portfolio position 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 in March 2007, and quickly gained recognition by being awarded the `most popular futures product in 2007′ by Futures and Options World.