AtoZForex.com Amsterdam — In less than two weeks time, the Dubai Commodities Clearing Corporation, commonly abbreviated as DGCX, has met another milestone. Nearing the end of May, DGCX signed a Memorandum of Understanding with the Bank of China, taking its collaboration with the Chinese party to another level. However, as of now the DGCX and its commodities Clearing Corporation arm has received the status of “Recognised Body” by the Dubai Financial Services Authority.
Explanatory, the Dubai Financial Services Authority (DFSA) is the reputable regulator of the Dubai International Financial Centre (DIFC) and accordingly DGCX operates within this DIFC region. Now that DGCX receives Recognised Body status by the DFSA overseer, resultantly all domiciled business in the DIFC district are now able to access the products and services offered by DGCX. Alongside, these businesses in the DIFC region have also become eligible to also fully utilise the Dubai Commodities Clearing Corporation arm of DGCX.
Becoming a member of the DGCX and its reputable branches, will grant any given DIFC financial business the possibility to directly access the Exchange for clearing and trade of the products listed on the DGCX Exchange. However, these financial firms still face one certain obstacle, as they are mandatory to apply for a No Objection Certificate first of the DFSA, before getting the DGCX membership. This is obligatory, aside the normative fact that financial institutions of the DIFC region need to possess over a license of the DFSA.
The current interim CEO of DGCX, Mr. Gaurang Desai is highly satisfied with this new development on top of the MoU signage of a few weeks back. In a further clarifying and statement derived from the press release, Mr. Desai expressed his contentment: “We are extremely pleased to receive this recognition from the DFSA, which will enable us to offer the full range of our listed derivatives products in all asset classes to the established and fast-growing DIFC community. This recognition will expand our membership base and further strengthen our liquidity pool while bringing more diverse participants into the DGCX market. We look forward to extending our network of regional and global partnerships through institutions based within the DIFC.”
The decision of the DFSA regulator to grant DGCX’s Recognised Body status is in alignment with the authorities goal for setting high standards and legislation inside the DIFC region. However, it’s not limited to the DGCX or regionally bound Exchanges, any Exchange in the world can apply for such a status by the DFSA, allowing them to get direct access to the DIFC market.