Dubai Commodities Clearing Corporation (DCCC) is widening the lineup of assets it accepts as collateral. Starting from December 1, 2015, DCCC will accept Gold and Silver (referred to as “Bullion”) DMCC Tradeflow Warrants towards Initial Margin and other deposits.
Members shall pledge the Tradeflow Warrants in favor of DCCC through the DMCC Tradeflow system for the quantity which is intended to be deposited as collateral. Bullion shall be subject to a minimum haircut/margin, which will be revised on a regular basis. In the beginning, the applicable haircut/margin is 17% for Gold, and 34% for Silver.
The Bullion to be collateralized should be deposited in the approved Vaults, including Brinks Global Services and Transguard Group – Emirates Group Securities.
The list of approved brands for Gold as Collateral includes 13 names, whereas the list of approved brands for Silver as collateral includes 11 names.
To view the latest notice from DCCC, click here.