THE Dubai Gold and Commodities Exchange (DGCX) has announced that Agricultural Bank of China (ABC) DIFC branch has become the first market maker for the Shanghai Gold Futures contract listed on its exchange. ABC is China›s third largest lender by assets and is one of the first participants in the precious metal business in China and is known to hold leading positions all the time. This week DGCX also obtained a license from the Shanghai Gold Exchange (SGE) to list Shanghai Gold Futures, the first yuan-denominated gold future product to be offered outside of China using the Shanghai Gold Benchmark Price as its pricing mechanism. Gaurang Desai, CEO of DGCX, said "having Agricultural Bank of China DIFC branch join as market maker is an important milestone for our Shanghai Gold Futures contract. We are grateful for their partnership especially as they are able to bring much needed liquidity to the marketplace. This will ensure we have a strong start to trading. We are already seeing good demand from investors. As the first yuan-denominated gold future product to be traded and cleared outside of China allows us to further strengthen our offering, deepening our commitment to the gold market." Fang Min, SEO of DIFC branch, at Agricultural Bank of China, added "we are pleased to have joined the DGCX. They have shown great desire to work with us and the Shanghai Gold Exchange in their bid to support the gold future contract on their exchange. We look forward to working in partnership with them going forward." As part of the agreement, ABC DIFC branch will offer bid and offer prices with a minimum spread and maximum size and maintain margins and collaterals.
