VFEX signs Dubai deal

By The Standard and Newsday | Sep. 9, 2021 | 2 Min read

As part of the agreement, the DGCX will extend technical support, knowledge and skills to VFEX, a subsidiary of the Zimbabwe Stock Exchange (ZSE), with the ultimate aim of establishing an international commodities exchange in Zimbabwe, according to a ZSE statement.

BY MTHANDAZO NYONI

THE Victoria Falls Stock Exchange (VFEX) has signed a Memorandum of Understanding (MoU) with the Dubai Gold and Commodities Exchange (DGCX), the region’s leading derivatives exchange —to strengthen bilateral co-operation as well as exchange knowledge around commodities trading.

Additionally, VFEX will seek support from the DGCX in framing a clearing and settlement commodities exchange framework.

The collaboration will also pave the way for possible investments by DGCX into the VFEX Commodities Exchange.

The one-year agreement was signed in Dubai by the of DGCX chief executive Les Male, and the CE of VFEX, Justin Bgoni, during the visit of a high-level Zimbabwean ministerial delegation, which also included Finance minister Mthuli Ncube.

Male said they were delighted to forge a partnership with the VFEX, as part of a wider strategy to strengthen commodities trading across Africa.

“We are confident that our deep knowledge and expertise will help bring value to VFEX as they kick start the Offshore Financial Services Centre (OFSC) for the special economic zone in Victoria Falls.

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“The partnership also builds on our expanding international footprint and represents another opportunity for us to build stronger inroads into Africa, a rapidly growing market with enormous potential,” he said.

Bgoni said: “On behalf of the VFEX, I am pleased to be part of this momentous occasion of the signing of the MoU between our exchange and the Dubai Gold and Commodities Exchange.”

“We are looking forward to a fruitful exchange of ideas and technical know-how that should culminate in us being able to replicate the success of the Dubai Gold and Commodities Exchange in our own country and under the proposed Victoria Falls Stock Exchange-driven commodities exchange.”

DGCX is the Arab region’s leading derivatives exchange and has played a pioneering role in developing the regional market for derivatives trading, clearing and settlement. The DGCX Group owns and operates the region’s largest and only multi-asset clearing house — Dubai Commodities Clearing Corporation (DCCC). DGCX and DCCC are regulated by the Securities & Commodities Authority (SCA).

It is recognised as a licensed Central Clearing-Counterparty (CCP) by SCA and a Third-Country CCP by European Securities Markets Authority (ESMA).

The DGCX’s strategic geographic location in Dubai between the Far East, Europe and Africa serves as a unique, global window for traders and investors. With over 100 members across the world, the DGCX drives liquidity in the market by offering a broad range of futures and options contracts covering base and precious metals — including the world’s only Shari’ah Compliant Spot Gold Contract — hydrocarbons, equities and currencies.