The Dubai Commodities Clearing Corporation (DCCC), the central counter-party (CCP) for the Dubai Gold & Commodities Exchange (DGCX), on Monday announced that Clearing members will now be able to deposit cash collateral to the Corporation in the form of Euro, UK Pound (GBP) and Japanese Yen (JPY) in addition to UAE Dirhams (AED) and U.S. dollars
This new FX collateral service will allow clearing members to utilize these currencies against their Margin commitments without having to actually convert these currencies into equivalent U.S. dollars. The facility has been made available through their multi-currency state-of-art DCCC’s EOS-Clear platform.
Gaurang Desai, CEO of DGCX, in a press release, said, “We are delighted to expand our Cash Collateral offering to our members, which will generate clearing efficiencies and mitigate the FX exposure of members, if any. The new facility provides significant value for clearing members who already maintain funds in these foreign currencies and could now offer these facilities to their clients. These new services have been designed to provide greater capital efficiency and boost liquidity in the DGCX marketplace.”
DCCC operates as a Central Counter Party (CCP) offering fully integrated clearing & settlement services and collateralization of exchange traded derivatives. DGCX/DCCC members and their clients benefit immensely from secured settlements and capital efficiency afforded to them via margin offsets and a wide range of collateral compared to any other CCPs in the region. DCCC has been the first CCP in the region to tie up with Euroclear and Clearstream to provide efficient collateral management solutions.
About DGCX:Established in 2005, DGCX is the region’s leading derivatives exchange and the only one allowing participants to clear and settle transactions within the Gulf region. The Exchange has played a pioneering role in developing the regional market for derivatives.
DGCX is a subsidiary of Dubai Multi Commodities Centre (DMCC), a strategic initiative of the Government of Dubai, with a mandate to enhance commodity trade flows through the Emirate by providing the appropriate physical, market, financial infrastructure and services required. It is an electronic commodity and currency derivatives exchange with 267 members from across the globe, offering futures and options contracts covering the precious metals, energy and currency sectors. For more information: www.dgcx.ae