Citigroup goes for gold in Dubai
Joins exchange centre and becomes key founder of commodities trading system.
US banking firm, Citigroup, has become a member of the UAE’s fledgling gold and commodities market, Dubai Metals and Commodities Centre (DMCC).
The DMCC was set up in October 2004 to provide a growing number of investors with access to key metal and commodities products, such as gold and gas. DMCC is a joint venture between Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies (India) Limited (FTIL).
Under the terms of the deal, Citigroup will be permitted to trade futures and options contracts, as well as the underlying instruments, on the Dubai Gold and Commodity Exchange (DGCX), where the contracts will be listed.
Trading at the DMCC is expected to commence in the second half of 2005, when gold will be traded. The exchange plans to introduce silver, steel, freight, cotton and energy contracts soon afterwards.
Citigroup confirmed it had also become a founding member of the Dubai Commodity Receipts (DCR), a new system created by the DMCC to facilitate the secure storage, trading and financing of commodities within the emirate.