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Screenshot of a breaking news alert e-mail from Q2 2017
Dubai Gold & Commodities Exchange (DGCX) has announced that Industrial and Commercial Bank of China Limited (ICBC) has joined as a Settlement Bank for Dubai Commodities Clearing Corporation (DCCC) – a wholly owned subsidiary of DGCX that acts as a central counterparty for all trades executed on the Exchange.
With the addition of ICBC, DCCC has expanded its network of Settlement and Clearing Banks to 6 global banks.
ICBC Abu Dhabi Branch has entered into settlement banking agreement with DCCC in Dubai at a signing ceremony held in presence of senior officials from China Foreign Exchange Trade System (CFETS) and ICBC head office.
This partnership will enable DCCC members to open their settlement bank accounts and process their settlement obligations for the RMB denominated trades executed on DGCX along with other clearing and post-trade services offered by the Bank.
ICBC is listed on both the Hong Kong and Shanghai Stock Exchanges.
Gaurang Desai, CEO of DGCX, noted:
DGCX is pleased to welcome ICBC as a Settlement Banking partner. This development is not only a significant step forward in expanding settlement services for DGCX market participants but is particularly important in light of the recent agreement to list Shanghai Gold Futures on DGCX (the first yuan-denominated gold futures product to be offered outside of China) and already listed USD-CNH futures. This is just a beginning for our relationship with ICBC and we expect to cooperate in developing mutually products & services going forward.
Mr. Zhou Xiaodong, General Manager of ICBC Abu Dhabi Branch added:
We are extremely pleased to associate with DGCX as the Settlement Bank. The association will facilitate adequate CNY liquidity for trading and investment between the local and Chinese economies. This will also lead the way for future product developments. As the largest bank in the world, we are proud to play an integral role in strengthening the development of UAE’s derivatives market.