The Dubai Gold and Commodities Exchange, the largest and most diversified financial derivatives exchange in the Middle East, has announced the cancellation of trading fees associated with the Sharia-compliant spot gold contract, which is traded on the exchange under the symbol “DGSG”.
And the stock exchange stated in a statement that, after obtaining regulatory approval from the Securities and Commodities Authority in the UAE, the exemption from the aforementioned contract fees is effective from August 21, 2023 until December 31, 2023.
During this period, the Dubai Gold and Commodities Exchange will waive all its fees and the fees of the Dubai Commodity Clearing Company, including fees associated with trading, clearing and delivery. This exemption does not include the Securities and Commodities Authority fee of $0.03.
The Dubai Gold and Commodities Exchange indicated that it is seeking the approval of the Securities and Commodities Authority to cancel the fees for its gold futures contracts, and it will inform the market of any developments in this regard in a timely manner.
The stock exchange stated that “amid global inflationary pressures and the state of uncertainty that hangs over the economic scene, the demand for gold remained strong in light of the increasing appetite of investors to purchase asset classes that constitute safe havens amid volatility.”
And she continued: «During the first half of 2023, the price of gold increased by 5.4%, to close at $1912.25 an ounce at the end of the period. With the exception of developed market stocks, gold outperformed almost all other major assets this year, which indicates its role as a reliable tool for preserving wealth.
DGCX Commercial Director Louis Himes said: “Having witnessed significant growth in the Sharia-compliant spot gold contract on the DGCX since its launch in 2018, we expect the fee waiver to increase trading volumes and stimulate demand for trading. The contract is in the long term, by attracting new investors from all over the region and the world.
He added, “The increasing demand for gold in light of the current economic environment, as well as the steady growth of the Islamic finance industry, add more support to trading volumes and liquidity. The Dubai Gold and Commodities Exchange is committed to working closely with its members to create a market that is as efficient, fair and transparent as possible.”
• The exemption is valid from August 21 to December 31, 2023.
2023-08-22 22:01:05
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