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Abu Dhabi, UAETuesday 19 June 2018

ADGM recognises the DGCX and DCCC as remote exchange and clearing house 

The move will enable companies within the free zone to use the trading and clearing facilities of the Dubai-based entities 

The Dubai Gold and Commodites Exchange has been granted recognition as a remote clearing house by ADGM. Ravindranath K / The National
The Dubai Gold and Commodites Exchange has been granted recognition as a remote clearing house by ADGM. Ravindranath K / The National

Abu Dhabi Global Market (ADGM) has granted official regulatory recognition to the Dubai Gold and Commodities Exchange (DGCX) and Dubai Commodities Clearing Corporation (DCCC), enabling companies within the free zone to use the trading and clearing facilities of the Dubai-based entities.

The move marks a further step in DGCX's plans to create a unified clearing house for several asset classes in the UAE.

ADGM's Financial Services Regulatory Authority (FRSA) announced it had granted DGCX and DCC recognition as a remote exchange and clearing house with immediate effect.

DGCX is the first exchange and clearing house to be granted the remote recognition status. The move allows ADGM-based financial institutions licensed by the FRSA to access DGCX and DCCC platforms for trading and clearing activities.

“We look forward to DGCX adding vibrancy to the capital markets in Abu Dhabi and the region,” said Richard Teng, the FRSA chief executive.

Aarna Capital, an ADGM-based brokerage house, is being on-boarded as the first member of DGCX and DCCC under the new status.

“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," said Gaurang Desai, DGCX's chief executive

"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.”

The announcement comes two weeks after Abu Dhabi Securities Exchange signed an agreement with DGCX and its parent company, Dubai Multi Commodities Centre (DMCC), to collaborate on a unified clearing house in the UAE.

Ahmed Bin Sulayem, the executive chairman of DMCC, said the “unique collaboration” between the bourse and the DGCX was expected to “lead to the creation of a national clearing house with the size, scale and capability to clear all asset classes."