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Dubai: The Dubai Gold and Commodities Exchange (DGCX) yesterday signed a strategic alliance with East Asia's premier futures and commodities exchange - the Shanghai Futures Exchange (SHFE).
The partnership will fac-ilitate 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 China.
The Memorandum of Understanding (MoU) signed by the two exchanges caps an initiative that began last year.
"The agreement with Shanghai Futures Exchange, one of Asia's prominent markets, will open a new window of opportunities for market participants in both regions," said Malcolm Wall Morris, chief executive of DGCX. "It will also enable us to jointly pursue initiatives aimed at higher efficiencies and improved liquidity."
The pace of growth at DGCX and the breadth of its portfolio positions it as a natural regional partner, said Wang Li-Hua, the chairperson of the Shanghai Futures Exchange.
"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 trading in gold futures contracts in January.
A second important offering, SHFE zinc futures, was listed on the exchange in March 2007, and quickly gained recognition by being awarded the `most popular futures product in 2007' by Futures and Options World.
The exchange also trades copper, which is now one of the world's largest contracts as well as futures in aluminium, natural rubber and fuel oil.
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