The Dubai Gold and Commodities Exchange (DGCX), a financial and commodity derivatives exchange, today signed a Memorandum of Understanding (MoU) with China Financial Futures Exchange (CFFEX), a futures exchange based in Shanghai.

This is the first MoU that CFFEX has signed with a derivatives exchange in the Middle East, said a company statement.

The partnership is aimed at strengthening the co-operation between the derivatives markets of China and the Middle East.

According to DGCX, the agreement is designed to facilitate closer co-operation in areas concerning risk management, business strategy, market surveillance and new product development.

Gaurang Desai, interim chief executive officer of DGCX, said: “The MoU will enable us to work together towards our mutual interests, enhance business opportunities, extend global reach and will gradually result in benefits for our customer base.”

“Through this association, both markets will be able to leverage knowledge and expertise to support pioneering ideas and further development in financial derivatives trading,” he added.

Hu Zheng, chief executive officer, CFFEX said: “As a leading derivatives exchange in the Middle East, DGCX has a great portfolio of products and is highly influential across regional financial markets.”

“The signing of the MoU with DGCX is in line with our strategy of globalisation and lays a good foundation for our future cooperation. We hope this will greatly benefit both exchanges and help us achieve a win-win outcome and common prosperity,” he added.

The MoU is the latest in a growing number of agreements between the UAE and China as both countries strengthen bilateral financial cooperation and promote trade and investment.

According to a recent report, China is expected to be one of UAE’s fastest growing trade routes over the next two decades — growing at 10 per cent per annum. – TradeArabia News Service