Dubai Commodities Clearing Corporation expands scope of Collateral Basket

The Dubai Commodities Clearing Corporation (DCCC), the central counter-party (CCP) for the Dubai Gold & Commodities Exchange (DGCX), has just announced expansion of its Collateral Basket.

Clearing members gain the ability to deposit cash collateral to the Corporation in the form of Euro, UK Pound and Japanese Yen, in addition to UAE Dirhams and U.S. dollars.

The 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 the DCCC’s EOS-Clear platform.

Gaurang Desai, CEO of DGCX, says,

“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.”

For the full press release, click here.

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