‘Loco Dubai’ - Accessing Financial and Physical Liquidity through the ‘DGCX Spot Gold Contract’

About DGCX and DCCC DGCX Spot Gold Contract – The Background DGCX Spot Gold Contract Specification Important Information Deliverable Brands Approved Vaults Trading and Delivery Flow Chart Costs – Vault Charges Performance & Opportunities 2 Presentation Flow

3 About – DGCX and DCCC

The Dubai Gold & Commodities Exchange (DGCX) is the largest and most diversified derivatives Exchange in the region. DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), an entity of the Government of Dubai. Established in November 2005, DGCX offers derivatives futures and options contracts in Precious Metals, Base Metals, Currencies, Energy, Equity Indices. DGCX is an SRO (Self Regulated Organization) regulated by the Securities & Commodities Authority (SCA) of the UAE. Clearing is provided by the Dubai Commodities Clearing Corporation (DCCC), a wholly-owned subsidiary of DGCX. DGCX operates on an industry standard technology platform called EOS powered by Cinnober, the leading exchange technology provider. DGCX today has a membership base of over 250 members DGCX 4

Regulated by the federal Securities & Commodities Authority of the UAE. DCCC application submitted for (TC-CCP) recognition under Article 25 of European Market Infrastructure Regulation (EMIR). 90 active clearers from diverse geographies such as UAE, UK, Switzerland and Singapore. First CCP in MENA to be SWIFT direct member. First CCP in MENA to EuroClear Bank for collateral solutions. First CCP in MENA to link to the Global Liquidity Hub of Clearstream. Span ® based up-front gross margining. Real-time position and risk monitoring. Settlement guarantee framework with zero defaults since inception. Dubai Commodity Clearing Corporation 5

6 DGCX Spot Gold Contract (LOCO DUBAI) The Background

12 DGCX Spot Gold Contract Specification

SpecificationsParameter SymbolDGSG Contract Size32 troy ounces Quality Specification0.995 fineness Price QuoteUS$ per troy ounce Tick SizeUS$ 0.10 Tick ValueUS$ 3.20 Minimum Delivery Size1 lot 13

Spot Gold Contract Specification SpecificationsParameter Trading DaysMonday through to Friday Trading Hours Hours Dubai time (GMT+4). Initial Risk Margin based on SPAN USD 1,300 per contract, subject to change Automatic Rollover Mechanism On any given trading day, unless a notice of delivery intent has been received by DCCC prior to 2015 Hours Dubai time, all open positions will be marked to market and automatically carried forward into the next trading session. For all carried forward position a rollover fee will be applied. Delivery Notice Before 2015 Hours Dubai time (GMT+4) on trading day Delivery Margin5 times the Initial Margin 14

Spot Gold Contract Specification SpecificationsParameter Delivery DaysT+2 (Monday to Friday) Delivery Unit troy ounces (1 kg) cast in one bar, accompanied by the original Refiner’s Certificate Delivery LogicRandom allocation Delivery Method Instrument & Location 100% Cash via DCCC, 100% physical Gold via Tradeflow Warrant at Approved Vault locations within Dubai. Pay- In of Funds / Delivery-In of Gold Exchange of Futures for Physical (EFP) EFP - a mechanism to exchange Futures for Spot, and Spot for Futures will be available 15 Pay in before 1000 Hours Dubai time (GMT+4) on T+2 Pay out after 1200 Hours Dubai time (GMT+4) on T+2

Spot Gold Contract Specification SpecificationsParameter Approved CMI / Assayers/ Brands/ Vaults Names as listed on the DGCX/DCCC website Rollover Fee, per lot US$ 0.96 per lot (subject to change) Delivery Limits 16 Participant TypeDelivery Limit Clearing Member50% of Open Interest OR 125 Kgs whichever is lower Trading Member20% of Open Interest OR 75 Kgs whichever is lower. Client10% of Open Interest OR 25 Kgs whichever is lower

17 Important Information

Deliverable Brands 18 Sr. No.Brand Name 1Argor Heraeus SA 2Al Etihad Gold LLC 3Emirates Gold DMCC 4Istanbul Gold Refinery 5PAMP SA 6The Perth Mint 7Valcambi SA

Approved Vaults 19 Sr. No. NameLocation 1Brinks Global Services 1. Gold Souk, Deira 2. Dubai Airport Free Zone 3. Al Mas Tower in DMCC – JLT 2Transguard Group - Emirates Group Securities

Trading and Delivery Flow 20 Trade during the Day (T) Give End of day delivery Intention Going into Delivery YesNo By Default Rollover Implications Rollover Fee (USD 0.96 per lot) Open Position continues (Margin) Mark to market Implications Delivery Margin to be paid (5 times the initial margin) T+2 settlement On T+2 Day Gold Warrants/Funds to be in settlement account before Pay-in

Gold, to be eligible for delivery in fulfillment of a DGSG, shall have been delivered to an Approved Gold Vault as follows: Directly from an Approved Gold Refiner for the account of a Clearing Member, Trading Member or Client, ; or Directly from another Approved Vault for the account of a Clearing Member, Trading Member or Client provided that such gold was delivered to that Approved Vault in accordance with clause above Trading and Delivery Flow

Costs – Transaction Fee 22 Charge headFee Exchange Trade Fee0.35 DCCC Clearing Fee0.10 ESCA Fee0.03 EFS/EFP/Block Trade Fee Same as Trade & Clearing Fee

Costs – Physical Handling 23 Charge HeadMinimumRate Acceptance OR Release (either full release or part release) N/A US$ per transaction Bar handling US$ per transaction US$ 0.50 per 1 kilo bar StorageUS$ per day US$ 0.10 per kilo per day Transportation US$ per shipment US$ 1.00 per kilo

Transportation costs are applicable within Dubai city limits only Each party i.e. Buyer as well as Seller will have to incur two separate charges per transaction viz. (a) for Acceptance; & (b) for Delivery respectively Customer requests for change in vault location of the same service provider will incur transportation and bar handling charges. In case if the service provider is changed during vault transfers, additional Acceptance and Release charges will also be applicable Costs – Physical Handling

25 Performance & Opportunities

The Trading Volume since launch of the contract (December 14, 2015) 88,864 Troy Ounces (2,777 Kilos) Delivery Volume since launch of the contract 9,216 Troy Ounces (288 Kgs) Opportunities: Dubai Loco Trade: `Tradeable’ market price available on DGCX Spot Gold Contract with flexibility of rollover Arbitrage & Spread Trading: DGCX Spot Gold futures prices spot in Dubai (Arbitrage with OTC) DG is a 32 troy ounces futures contract pricing Gold in USA (Arbitrage with US futures) DIG is a Quanto futures contract pricing Gold in India (Arbitrage with India futures) DG-DIG spread (US and India futures spread) Performance & Opportunities

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