FT Group sells 1 per cent stake in Dubai Gold Exchange for $12.5 million

Mumbai: Financial Technologies Group has sold one per cent stake in Dubai Gold and Commodities Exchange (DGCX) to Dubai Multi Commodities Centre (DMCC) for $12.5 million (Rs 55 crore).

DMCC now holds 51 per cent and FT Group 49 per cent in DGCX, Financial Technologies (India) Ltd informed the Bombay Stock Exchange in a regulatory filing.

DGCX was started as a joint venture between DMCC, the government of Dubai, FTIL and Multi Commodity Exchange of India Ltd (MCX).

"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," Jignesh Shah, founder CEO of FT Group, said.

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

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

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

DGCX currently 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. DGCX has also foreshadowed the future listing of various agricultural, metal and energy products.