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DGCX, DMCC signs MoU with RAK Bank to develop precious metals products

DGCX, DMCC signs MoU with RAK Bank to develop precious metals products
The agreement aims at enhancing retail appeal - (Photo Credit: Press Release)
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Mubasher: The Dubai Gold and Commodities Exchange (DGCX), the Dubai Multi Commodities Centre (DMCC) and the National Bank of Ras Al Khaimah (RAK Bank) signed a Memorandum of Understanding (MoU) on Saturday for the development of bullion products, according to a press release.

One product that is in immediate consideration is a Retail Spot Gold contract that could be specifically targeted for retail investors and traders.

A potential Retail Spot Gold contract could have a smaller denomination size in comparison to the existing DGCX Spot Gold contract which requires physical delivery of one kilogram gold bars.

The potential Retail Spot Gold contract would be fully backed by physical gold, and will be held in an electronic form with the capability of physical redemption.

All products will be submitted to the relevant regulatory authorities for approval prior to launch, the statement indicated.

This will cast a wider net in terms of a target investor audience and is expected to appeal more to retailers and smaller, more risk-averse investors and traders based in the region who have been looking at gold products offered through a fully licensed exchange, such as the DGCX, the statement added.