DGCX boosts ties with Chinese derivatives market

29 May 2015

CFA acts as the bridge between the government and the futures market, exercising self-regulation and safeguarding the legitimate interests of its members. 

Dubai: The Dubai Gold and Commodities Exchange (DGCX) boosted its relationship with the Chinese derivatives market with the signing of a Memorandum of Understanding (MoU) with the China Futures Association, an industry regulator.

The latest agreement in a growing number of agreements between the UAE and China seeks to enhance ties between the markets of China and the UAE, with a focus on increasing interaction between key players in the derivatives industry both in the private and public sectors.

The new move come close on the heels of another agreement DGCX signed with the Bank of China to enhance interaction and collaboration between the derivatives and financial markets of both countries.

China Futures Association (CFA) is a Beijing-headquartered non-profit self-regulatory industry body with the capacity to implement laws, regulations and policies for the futures market.

CFA acts as the bridge between the government and the futures market, exercising self-regulation and safeguarding the legitimate interests of its members.

Gaurang Desai, Interim Chief Executive Officer of DGCX, said the MoU only would help bring both institutions closer to the Chinese derivatives market, it will also allow DGCX to gain a better understanding of each other’s strategies and business goals.

“It is important for us to expand our relationships with markets across the world, and this can only be done through partnerships like these that offer us the opportunity to have first-hand interactions with the key stakeholders of the market,” said Desai.

Zhichao Liu, Chairman of CFA said DGCX’s large member community, as well as its substantial leadership in the region’s financial markets provides CFA with opportunities to expand its own global network of relationships. “This MoU will be a significant opportunity to support each other’s growth by sharing best practices, industry knowledge and market information.”