Rapidly emerging Middle Eastern trading venue Dubai Gold and Commodities Exchange (DGCX) and Dalian Commodity Exchange (DCE) which is China’s most prominent commodity exchange, announced today that they are taking steps to further deepen product development cooperation to enhance the derivatives marketplace in the Middle East and Asia.
Following discussions held on the sidelines of the China International Derivatives Forum (CIDF) in Shenzhen, DCE and DGCX further agreed to collaborate in developing products in the petrochemicals and agricultural sectors in active consultation with market regulators in China and UAE. The exchanges aim to combine each other’s product development strengths and expertise to efficiently serve the needs of each of their markets.
Since the signing of a memorandum of understanding (MoU) in 2012, both the exchanges have been working closely to further product development cooperation and knowledge sharing. The simultaneous launch of their respective polypropylene (PP) futures contracts in February 2014 was a result of this collaboration.
DGCX has made tremendous steps toward international prominence over recent years under the steerage of former CEO Gary Anderson who sadly passed away recently. Under his management, the exchange experienced remarkable success with its Indian Rupee futures contract.
Both exchanges are continuing to engage with each other to use feedback from participants in each other’s markets to improve product design and specifications. Following the recent discussions, DGCX has decided not to go ahead with the scheduled launch of Cash Settled China Soybean Oil futures contract at this time.