November launch for Dubai exchange

The Dubai Gold and Commodities Exchange (DGCX) will open for trading in November this year, chairman David Rutledge said today.

The exchange is now open for membership, which will initially be limited to 250 traders and 250 brokers. Vice-chairman Jignesh Shah said DGCX would try to attract "leading commodities and securities players" to boost market confidence in the new exchange.

The initial clearing banks for DGCX were named as HSBC and National Bank of Dubai.

Brokers will pay $100,000 for membership, which will allow them to trade in all segments of the market, either as a principal or on behalf of their clients. The cheaper trade membership will cost $20,000, but will only permit trading in one sector, and only as a principal.

The exchange will open with trading in gold futures. Silver futures will be added before the end of the year; early 2006 will see the addition of gold and silver options, and commodity trading in steel, fuel oil, other metals, energy, agricultural products and freight. Trading will take place seven days a week from 10:00 to 23:00 local time, with members able to trade remotely.