The Dubai Financial Services Authority (DFSA), the regulator for the Dubai International Financial Centre (DIFC), has granted the Dubai Gold and Commodities Exchange (DGCX) and its CCP Operator division – Dubai Commodities Clearing Corporation (DCCC), a status of a “Recognised Body”.
The Recognized Body status enables financial institutions domiciled in the DIFC, a special free zone in Dubai, to become members of the DGCX.
Membership in DGCX/DCCC means for a financial institution that it can directly access the Exchange to trade and clear all products listed on the Exchange. One thing to bear in mind is that before applying for a DGCX membership, a business has first to obtain a No Objection Certificate (NOC) from the DFSA.
Gaurang Desai, Interim CEO of DGCX, commenting on the recognition, said: “We are extremely pleased to receive this recognition from the DFSA, which will enable us to offer the full range of our listed derivatives products in all asset classes to the established and fast-growing DIFC community. This recognition will expand our membership base and further strengthen our liquidity pool while bringing more diverse participants into the DGCX market. We look forward to extending our network of regional and global partnerships through institutions based within the DIFC.”
DFSA sets standards for exchanges inside of the DIFC and grants Recognised Body status to exchanges that meet their standards and operate outside of the DIFC globally. Exchanges approved as a Recognised Body are allowed to offer direct market access to the firms within the DIFC.
Financial institutions domiciled in the DIFC and licensed by DFSA interested in applying for a DGCX membership must be licensed to carry out Futures & Options activities by the DFSA.
To view the official announcement, click here.