|
||||||||||||
DGCX Announces The GCC’s First Sharia-Compliant Gold Product With INTL FCStone Commodities DMCC As Market Maker |
||||||||||||
|
Leaving no stone unturned in the lead-up to the launch of its ambitious Sharia-compliant Spot Gold contract, the Dubai Gold & Commodities Exchange (DGCX) today announced INTL FCStone, a leading international financial services firm, as the market maker for the product. DGCX’s physically-backed Sharia-compliant Gold contract is the first-of-its-kind and will mark the Exchange’s entry into the Islamic Finance sector. Trading will commence on the Exchange from March 29, 2018. DGCX has been working with Ayedh Dejem Group from the Kingdom of Saudi Arabia to launch the Sharia Spot Gold contract, which will be the GCC’s first ever Sharia-compliant Spot Gold product to be listed on a regulated and reputed Exchange platform. Amanie Advisors LLC, a leading global Islamic Finance advisory firm, has been advising the DGCX on this initiative. The Sharia-compliant Spot Gold contract is certified by reputed Sharia scholars and in line with AAOIFI standards (The Accounting and Auditing Organization for Islamic Financial Institutions). DGCX’s Sharia-compliant Spot Gold contract is strategically placed to launch at a time when Sharia-compliant investments across the globe are worth an estimated USD 2 trillion, with gold constituting a sizable proportion of those investments. Les Male, CEO of DGCX, commented: “We are excited to have INTL FCStone come on-board as the market maker for the launch of our Sharia-compliant Spot Gold contract. Given their deep expertise and capability in precious metals trading, INTL FCStone will bring much-needed liquidity to the marketplace and ensure that we have a strong start to trading. There is already a tremendous amount of interest to hedge and invest in this product given the recent trends in global geopolitics and increased volatility in gold. This contract is designed to meet the requirements of the varied trading needs of our customer base within the UAE, Saudi Arabia and the wider GCC region. Our partnership with INTL FCStone will attract more global investment to this product.” As the largest and the most diversified derivatives bourse in the Middle East, DGCX is confident of the product’s success and believes it will encourage new and existing institutional participants to invest and trade in Sharia-compliant products. “Gold remains a good hedge against inflation as well as any financial uncertainties and is therefore a preferred asset within any prudent investment portfolio. DGCX’s Sharia-compliant Spot Gold will have a wider appeal among investors in the region and worldwide,” Male concluded. Barry Canham, Global Head of the precious metals business at INTL FCStone, said: “We are honored to serve as the market maker for DGCX’s Sharia-compliant Spot Gold contract and excited to bring this product to market. Dubai and the MENA region more broadly are integral markets for our global Precious Metals business, and we look forward to promoting greater investment in the area alongside DGCX. Serving as market maker for the Sharia-compliant Gold contract further enhances the services that we offer to our customer base and increases our prominent leadership position within the global bullion market.” |
||||||||||||
