DMCC revises DGD qualification criteria
Dubai, April 26, 2011
The Dubai Multi Commodities Centre Authority (DMCC), the licensing authority for Jumeirah Lakes Towers (JLT) free zone, has revised its qualifying criteria for the Dubai Good Delivery (DGD) standard.
The DGD standard, launched by DMCC in 2005, is the adopted quality standard for gold and silver bars production and technical specification in the region, and is benchmarked to global standards.
DGD members are international and local refineries that must maintain strict standards of creditworthiness, operational competency and appropriate production procedures, ensuring the manufacturing of high quality gold and silver bars, said a DMCC statement.
The changes were made following in-depth consultation with market participants and industry representatives across the entire gold supply chain.
Under the revised rules, the DMCC has increased the minimum total net worth required for applicant and member refineries to qualify for DGD.
Additionally, the two DGD standard categories have been consolidated into one DGD standard category as a result of DMCC adopting a risk-based approach in terms of screening new applicants as well as monitoring existing members.
Also the members and applicants will now be subjected to more stringent proactive spot checks to ensure that the quality of their gold and silver bars are consistent with the DGD technical specifications, said Malcolm Wall Morris, chief executive officer of DMCC.
'DMCC’s robust regulatory framework is a testimony of its commitment towards promoting the highest global standards in product and services development as well as greater transparency,' he added.
The DGD standard and accreditation has been adopted by the Dubai Gold and Commodities Exchange (DGCX) as its ‘Approved Brands’ lists for gold and silver that are physically delivered against maturity of the one kg Gold & 1,000 troy ounce Silver futures contracts.
Eric Hasham, CEO of the DGCX said, “These revisions will, no doubt, further enhance the reputation of accredited DGD brands and provide additional confidence to the members of DGCX to source physical gold and silver in Dubai against their gold & silver futures contract.”
The DGD list of approved refineries has 20 gold and 17 silver refineries, spanning 13 countries including Australia, Bulgaria, China, Indonesia, Japan, Mexico, Poland, Russia, Saudi Arabia, South Africa, Turkey, UAE and US.-TradeArabia News Service