Dubai: Dubai Multi Commodities Centre has bought a one per cent stake in the Dubai Gold and Commodities Exchange (DGCX) from Financial Technologies Group (FT Group) for $12.5 million.

DMCC now holds 51 per cent in DGCX.

Jignesh Shah, Founder CEO of FT Group, said: "To date, DGCX has proven to be a successful venture and DMCC, as a Government of Dubai Authority with extensive relationships with the commodity sector in the region, is the appropriate venture partner to hold the majority interest in DGCX.

"FT Group remains fully committed to ensuring that DGCX achieves its potential role among the world's leading commodity exchanges."

Dr David Rutledge, chief executive of DMCC said: "This transaction testifies to DMCC's total confidence in, and commitment to, DGCX."

"DMCC has a productive relationship with FT Group and we look forward to working with them to fully exploit the full potential of the exchange.

FT Group as the 'engine room' of DGCX, has been a cornerstone of its success to date and will continue to underpin its future growth," Dr Rutledge added.

Steel futures

DGCX is an electronic futures and options exchange which utilises trading, clearing and settlement technology developed by FT Group.

DGCX presently lists futures contracts in gold, silver, currencies and fuel oil. It has recently announced the imminent launch of futures contracts in steel, and options contracts on gold. It has also foreshadowed the future listing of various agricultural, metal and energy products.

DMCC was created in 2002 as a strategic initiative of the Dubai Government to establish a commodity marketplace in Dubai.

Rated 'A' by Standard and Poor's, it provides the market infrastructure that brings together a wide range of commodities activities, and is committed to serve the needs of participants in the gold, diamonds and commodities markets.