SEATTLE (Scrap Monster): The Dubai Gold and Commodities Exchange (DGCX) announced launch of new Physical Gold Futures and Spot Gold Contracts.
The newly launched products will allow traders and financial institutions to use physical gold as collateral to access affordable sources of short-term lending. The products are designed in such a way that they can be used by traders to get short-term liquidity from banks through the spot gold markets. Both the products are available for trading now on the DGCX EOS Trader platform.
The first transaction was successfully completed between Paloma Precious DMCC, and one of the most reputable banks in the UAE, by which the DGCX member gained access to short-term liquidity. The transaction involved changing hands of Emirates Gold physical gold bars, said the exchange press release.
The gold delivered under the Spot Gold Contract will be of a fineness of 995.0 parts per thousand. Also, the DGCX clearing house will act as the central counterparty to all transactions involving the newly launched products.
Ahmed Bin Sulayem, CEO, DGCX noted that the launch of new products offers tremendous potential for traders, brokers, banks and financial institutions. Furthermore, it reflects the exchange’s commitment to continuously facilitate access to high-quality products and services to its members.