July 16: Multi Derivatives Exchange Nepal (MDX) has signed a Memorandum of Understanding with Dubai Gold and Commodities Exchange (DGCX) to collaborate and share knowledge on areas of mutual benefit surrounding commodity trading.
MDX, a proposed derivatives exchange in Nepal that has applied for a regulatory license from Security Board of Nepal (SEBON) to operate a commodities and derivatives exchange, announced on Tuesday the signing of MoU with DGCX, a globally renowned derivatives exchange based in Dubai of UAE, agreeing to promote strong cooperation between the exchanges.
Les Male, CEO of DGCX and Dipak Raj Pandey, coordinator of MDX, signed the first-of-its-kind agreement at the office of DGCX in Dubai amid a ceremony attended by senior representatives from both sides on Monday, July 15.
An associate of MDX told New Business Age this is the first time that such an agreement has been reached with a foreign company in this sector.
As per the agreement, DGCX will work closely with MDX in areas of shared interest including trading, clearing, settlement, delivery of contracts, compliance and surveillance, contract design and pricing, technology, and risk management.
“This agreement comes in accordance with our vision to expand our knowledge base, and foster more collaboration in the industry and across borders. At DGCX, we are always looking for innovative ways to develop and enhance our offering, and we are confident that this partnership will lead to a successful and fruitful outcome that is mutually beneficial to both parties,” said Les Male, CEO of DGCX.
Dipak Raj Pandey, coordinator of MDX, said that DGCX and MDX share a common goal to follow international best practices and provide innovative derivatives products to their members.
“The signing of this MoU is a significant step towards productive collaboration, and will allow us to leverage each other’s strengths, knowledge and experiences,” he added.
DGCX has been a major global derivatives exchange situated in Dubai of UAE that creates a global expertise in organizing market of different commodities, financials and currency derivatives.
It is believed that the mutual collaborations between MDX and DGCX will contribute to the development of derivatives market and expertise building in the Nepalese context and will also add more portfolios to DGCX.