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Metals

Metals

Metals

Spot Gold

Dubai is known as the city of gold. Some of the traditional issues for the Gold market here in Dubai are price discovery and basis risk management. The introduction of a spot gold contract on DGCX will create significant value to the physical market participants, enabling them to manage their risk appetite and facilitate a combination of strategies that can be deployed on both futures and spot platform to provide the desired yield.

Contract

Parameters

Contract Symbol

DGSG

Underlying

Gold

Contract Size

32 troy ounces. (1 kg)

Notional Contract Value

32xGold Price quote in USD pr troy ounces

Trading Currency

USD

Settlement Currency

USD

Price Quote

USD per Troy Ounces

Tick Size

USD 0.1

Tick Value

USD 3.2

Settlement Basis

Physical Delivery

Automatic Rollover Mechanism

On any given trading day, unless a notice of delivery intent has been recieved by DCCC prior to 20:15 Hours UAE time, all open positions will be marked to market and automatically carried forward into the next trading session. For all carried forward positions a rollover fee will be applied

Final Cash Settlement Price

As published by DGCX in line with relevant Rules, Bylaws and notices published and updated from time to time

Trading Days

Monday to Friday

Trading Hours

07:00 - 20:00 Hours UAE time (GMT+4)

Max Order Size

200 lots

Minimum Delivery Size

1 Lot

Delivery Notice

Before 20:15 Hours UAE time (GMT+4) on trading day

Initial Margin based on SPAN

USD 1,200 per contract, subject to change.

Delivery Margin

5 times the Initial Margin, subject to change

Daily Price Movement limit

No Price Limit*

Note 1*: For the avoidance of "fat finger" errors, price band shall be USD 20 from previous settlement price e.g. if previous settlement price is USD 1,200 then the price band is from USD 1,180 to USD 1,220. If price breaches the daily price movement limit, trading in particular contract shall continue, with the new trading price range without any cooling period

 

Delivery Mechanism Details

 

Delivery Unit

31.99 troy ounces (1kg) cast in one bar, accompanied by the original Refiner's Certificate

Deliverable Quality

0.995 Fineness

Delivery Logic

Random allocation

Delivery Days

T+2 (Monday to Friday)

Delivery Fee

Rates applicable and to be published on the DGCX/DCCC website.

Delivery Method Instrument & Location

100% Cash via DCCC, 100% physical Gold via DMCC Tradeflow Warrant at approved vault locations within the Emirate of Dubai.

Pay-In of Funds / Delivery-In of Gold

Pay in before 10:00 Hours UAE time (GMT+4) on T+2. Pay out after 12:00 Hours UAE time (GMT+4) on T+2.

Exchange of Futures for Physical (EFP)

EFP (Exchange of Futures of Physical) - a mechanism to exchange Futures for Spot, and Spot for Futures will be available

Approved CMI / Assayers

Names as listed on the DGCX/DCCC websites

Approved Brands

Names as listed on the DGCX/DCCC websites

Rollover Fee, per lot

US$ 0.96 per lot charged to the holders of positions that have been rolled over. The rollover fee will be published by DCCC from time to time. The corporation could levy different rollover fees for the long and short positions

Daily Settlement Price

As per DGCX Notice # COMP-2008-014 dated April 22, 2008

Position Limits

As determined by Exchange from time to time

Delivery Limits

Clearer Member level limit - 50% of Open Interest OR 125 Kgs whichever is lower. Trading Member level limit - 20% of Open Interest or 75 Kgs whichever is lower. Client level limit - 10% of Open Interest OR 25 Kgs whichever is lower. All above conditions and parameters are subject to change by DCCC from time to time and will be published on our website.