DGCE to trade in UAE dirhams 18 December 2014Dubai Reporter: Stephanie Palmer
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Dubai Commodities Clearing Corporation (DCCC) now allows members of the Dubai Gold and Commodities Exchange (DGCE) to settle transaction in UAE dirhams as well as in US dollars.
The change comes after the second upgrade to DTCC’s new clearing platform, EOS-Clear, and allows members to utilise funds in UAE dirhams (AED) for settlement purposes.
Members can also provide fixed deposits and bank guarantees as collateral in AED, and the EOS-Clear platform can now support multi-currency clearing and settlement facilities.
This is part of the DCCC’s efforts to increase trading efficiencies for DGCX members. It recently announced that access to its Emirates NBD SmartBusiness service will be extended to include a Friday service, in order to help members increase trading flexibility and reduce costs.
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 clearing house for DGCX and as central counterparty for all trades carried out on the exchange. In this way, it aims to safeguard participants against counterparty risk by acting as both buyer and seller for all futures contracts bought and sold.
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