Sunday 23 February 2020

DGCX, RakBank to launch Mini-Gold Futures product

DUBAI, April 10, 2019

Dubai Gold & Commodities Exchange (DGCX), the region’s leading derivatives exchange, said it has reaached an agreement with RakBank, to launch a Mini-Gold Futures product, offering investors the chance to trade gold in smaller denominations.

The contract will be the first-of-its-kind, and is in response to feedback from market participants that emphasized a strong desire from smaller investors to increase their exposure in the precious metals market, said statement from DGCX.

The Mini-Gold product will be made available on the DGCX platform and cleared by the Dubai Commodities Clearing Corporation (DCCC). Initially, delivery will take the form of electronic transfer at RakBank, although as the contract develops it is envisaged that the additional capability of physical redemption will be added, it stated.

The launch of the Mini-Gold contract is targeted for Q3 subject to the appropriate approvals, it added.

CEO Les Male said: "The DGCX’s decision to expand its precious metals portfolio is a direct result of the partnership we forged with RakBank in 2017. We are delighted to have built on this relationship, and excited to announce the launch of the Mena’s first exchange listed Mini-Gold product together."

"There is a strong desire to own gold in the UAE, but at present, it is difficult for smaller investors to buy Gold Futures given the large size of the contracts. This significant move will open up access for them and permit accumulation of Gold as part of their savings, while ultimately contributing to the development of the region’s bullion market," he added.

RakBank's Managing Director of Treasury Vikas Suri said: "We were very pleased to join hands with the DGCX and DMCC two years ago to start work on the development of a platform that would allow customers, large and small, from across the region to acquire gold at competitive prices with just a click of a button through an integrated Digital Banking platform."

"I am delighted to note that this vision has now become a reality and that the end product of a significant amount of hard work, commitment and determination from all sides has culminated in the agreement to launch the DGCX Mini-Gold product," he noted.

"This is part of our exciting RAKGOLD project to create the UAE’s first full service, end to end bullion banking offering and we look forward to supporting the new contract as both a market maker and gold clearer," he added.-TradeArabia News Service


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