The Dubai Gold and Commodities Exchange (DGCX) announced that it has received a positive assessment from the European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, and is now listed as a third-country trading venue (TCTV) that meets the post-trade transparency requirements under MiFID II and MiFIR.
The DGCX met all the criteria set out in the ESMA Opinion (determining TCTVs for the purpose of transparency under MiFID II and MiFIR), including the requirement to have a post-trade transparency regime in place which ensures that transactions are published as soon as possible after being executed. Having met these criteria, instruments traded on the DGCX are not to be considered as Over-The-Counter (OTC) transactions, and firms that execute trades on the DGCX will not have to publish details of each transaction and incur the associated costs with doing so.
Les Male, CEO of DGCX, said: “MiFID II and MiFIR are important regulations that increase transparency across financial markets, so we are delighted to have met the high standards set by them. This is a significant milestone for both the DGCX and the UAE, and underpins our continued efforts to align with international standards. We are confident that this move will make the DGCX more accessible to European investors, while laying the foundations for us to collaborate with institutions across Europe.”
In 2017, the DGCX’s wholly-owned and regulated clearing house, the Dubai Commodities Clearing Corporation (DCCC), received recognition as a third-country Central Counter Party from ESMA.