DCCC offers settlement in UAE Dirhams

DUBAI: The Dubai Commodities Clearing Corporation, DCCC, the central counter-party, CCP, service provider of the Dubai Gold and Commodities Exchange, DGCX, today announced that Clearing Members will now be able to settle their transactions in UAE Dirhams, AED, in addition to US Dollars.

This new settlement service allows members to utilise funds in UAE currency for settlement purposes. The facility has been made available following the second upgrade of DCCC’s EOS-Clear, its new state-of-art clearing platform. In addition, these facilities will allow clearing members to provide Fixed Deposits and Bank Guarantees as collateral in UAE Dirhams. The EOS-Clear platform now supports multi-currency clearing and settlement facilities.

Gaurang Desai, Interim CEO of DGCX said, “We are delighted to introduce the new settlement facilities in UAE Dirhams. These new facilities, launched on the occasion of the 43rd UAE National Day, will generate significant additional trading and settlement efficiencies for our members. The new AED banking facility provides significant value for members who maintain AED accounts while the new AED collateral facility will provide them an avenue to generate better returns.

These new services have been designed to provide greater capital efficiency and boost liquidity in the DGCX marketplace.” The DCCC acts as the clearing house for DGCX and is therefore the central counterparty for each trade carried out on the Exchange. DGCX is the only Exchange in the region with local clearing house facilities – helping to safeguard participants against counterparty risk by acting as the seller to every futures contract bought and the buyer to every futures contract sold, thereby guaranteeing settlement.

As part of DCCC’s efforts to increase trading efficiencies for DGCX Members, it recently announced that access to Emirates NBD’s smartBUSINESS service, which provides cash management, trade and treasury solutions, will be extended to Fridays, in addition to working days. This allows Members to take advantage of seamless international remittances on Fridays, which will significantly help their liquidity management efforts and support increased trading flexibility and cost efficiencies.

SOURCE: WAM