The Dubai Gold and Commodities Exchange (DGCX) and its subsidiary, Dubai Commodities Clearing Corporation (DCCC) have been recognised as a remote exchange and clearing house by the Financial Services Regulatory Authority (FSRA), the regulatory authority for the Abu Dhabi Global Market (ADGM).

This regulatory approval will enable ADGM companies to access its trading and clearing platforms.

The recognition status takes effect immediately and enables financial institutions domiciled in the ADGM and licensed by the FSRA to become members of the DGCX, the region’s largest and most diversified derivatives exchange and clear through its globally recognized clearing house, DCCC, it stated.

At present, Aarna Capital Limited, an ADGM domiciled brokerage house, is being on-boarded as the first member of DGCX and DCCC under the new status.

Gaurang Desai, the chief executive of DGCX, said: "We are delighted about being the first exchange and clearing house to be granted remote recognition status by FSRA. This accreditation will enable us to offer the full range of our listed derivatives products in all asset classes to the burgeoning ADGM community."

"It will support us in expanding our membership base and further bolster our liquidity pool while bringing in more diverse participants to the DGCX marketplace," observed Desai.

"We also welcome Aarna Capital  to the DGCX family and look forward to extending our network of regional and global partnerships through institutions based within the ADGM," he added.

Richard Teng, the chief executive of the FSRA, said: "We congratulate DGCX as the first remote exchange and clearing house to join the ADGM family. This exciting development provides ADGM-licensed entities the platform to transact and clear commodity derivatives via DGCX’s regulated and transparent electronic marketplace, and gain access to a broader product base within ADGM."

"We look forward to DGCX adding vibrancy to the capital markets in Abu Dhabi and the region," remarked Teng.

"As an international financial centre, ADGM will continue to actively advocate and maintain a well-regulated, dynamic and conductive environment that attracts and supports both local and global institutions in their growth aspirations and business needs," she added.-TradeArabia News Service