The Dubai Gold and Commodities Exchange announced the cancellation of trading fees associated with the spot gold contract, which is compatible with Islamic law, and which is traded on the exchange under the symbol DGSG.
The exemption from the aforementioned contract fees is effective from August 21, 2023 until December 31, 2023, after the stock exchange obtained regulatory approval from the Securities and Commodities Authority in the UAE, according to a press release.
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, and this exemption does not include the fees of the Securities and Commodities Authority of $ 0.03.
The Dubai Gold and Commodities Exchange is also 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.
Louis Himes, Commercial Director of the Dubai Gold and Commodities Exchange, said: We expect the fee waiver to increase trading volumes and stimulate demand for contract trading in the long term by attracting new investors from across the region and the world.
It is noteworthy that the DGSG instant gold contract is compatible with the principles of Islamic law for gold ownership and is approved by a group of prominent Sharia scholars. Therefore, the contract meets the requirements of the Emirates Standard for Good Delivery of Gold.
The delivery takes place through the DMCC Tradeflow platform, which is an electronic platform specially designed to record possession and ownership of goods stored in facilities located in the UAE, ensuring smooth delivery of contracts being traded.
The spot gold contract forms part of DGCX's diversified portfolio of precious metals contracts, including spot and futures contracts for gold, silver and copper. The exchange is working on offering new contracts, such as the spot silver contract, which is compatible with Islamic law, which is currently being reviewed by the Securities and Commodities Authority.