DGCX 'not affected by FTIL problems'
Dubai, September 4, 2013
Dubai Gold and Commodities Exchange, the region's first derivatives exchange, has affirmed that it has not been affected by the ongoing developments at India-based Financial Technologies Group (FTIL), its minority shareholder.
The DGCX clarification comes in the wake of reports in Indian press that NSEL, promoted by FTIL, is facing the problem of settling Rs5,600 crore ($839 million) in dues to 148 members after it suspended trade on July 31 as per government direction.
In a press statement released on Wednesday, the DGCX said that Financial Technologies was a minority shareholder in the exchange holding two of the five nominated board seats.
DGCX also clarified that no director of the exchange had any operational responsibility for the running of the FTIL.
Further, the Dubai exchange said that it had replaced all the trading and clearing technology supplied by FTIL Group with a new system 'EOS' supplied by Cinnober in March.
The Dubai Multi Commodities Centre (DMCC) a Government of Dubai entity is the lead promoter of the exchange and subsequent to a recent share issue now owns 67 per cent of DGCX.
DGCX is regulated by the Emirates Securities and Commodities Authority (ESCA) who are fully aware of the exchange's operations.-TradeArabia News Service