The Dubai Gold and Commodities Exchange (DGCX) and its CCP subsidiary, Dubai Commodities Clearing Corporation (DCCC), have been recognized as a remote Exchange and Clearing House by the Financial Services Regulatory Authority (FSRA), the regulatory authority for the Abu Dhabi Global Market (ADGM), enabling ADGM companies to access its trading and clearing platforms.
The recognition status takes effect immediately and enables financial institutions domiciled in the ADGM and licensed by the FSRA to become members of the DGCX, the region’s largest and most diversified derivatives exchange and clear through its globally recognized Clearing House, DCCC.
At present, Aarna Capital Limited, an ADGM domiciled brokerage house, is being on-boarded as the first member of DGCX and DCCC under the new status.
Offering full range of listed derivatives products
Gaurang Desai, Chief Executive Officer of the DGCX, while commenting on the certification, said: “We are delighted about being the first Exchange and Clearing House to be granted remote recognition status by FSRA. The FSRA accreditation will enable us to offer the full range of our listed derivatives products in all asset classes to the burgeoning ADGM community. This recognition will support us in expanding our membership base and further bolsters our liquidity pool while bringing in more diverse participants to the DGCX marketplace. We also welcome Aarna Capital Limited to the DGCX family and look forward to extending our network of regional and global partnerships through institutions based within the ADGM.”
Richard Teng, Chief Executive Officer of the Financial Services Regulatory Authority of ADGM, said: “We congratulate DGCX as the first remote exchange and clearing house to join the ADGM family. This exciting development provides ADGM-licensed entities the platform to transact and clear commodity derivatives via DGCX’s regulated and transparent electronic marketplace, and gain access to a broader product base within ADGM.”
“We look forward to DGCX adding vibrancy to the capital markets in Abu Dhabi and the region. As an international financial centre, ADGM will continue to actively advocate and maintain a well-regulated, dynamic and conductive environment that attracts and supports both local and global institutions in their growth aspirations and business needs,” added Teng.
Adding more transparency
Financial institutions domiciled in ADGM and licensed by FSRA interested in applying for a DGCX membership must be licensed to carry out Futures and Options activities by the FSRA.
Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing global participants to trade, clear and settle transactions within the Gulf region.
While ADGM is an international financial centre in the capital of the UAE, opened for business in October 2015. In line with the Abu Dhabi’s Economic Vision, ADGM is a natural extension of Abu Dhabi’s role as a reliable and responsible member of the global financial community