DGCX Expands Collateral Basket in Partnership with Standard Chartered Bank
The Dubai Gold and Commodities Exchange (DGCX) and its Central Counter Party (CCP) subsidiary, Dubai Commodities Clearing Corporation (DCCC), revealed that getting rid of participants could now deliver eligible global safeties as collateral. To underpin the development of the security basket, Requirement Chartered Bank will give Safekeeping Administration Provider on this added form of collateral and will certainly be responsible for safeguarding the assets.
DCCC Clearing Members currently place collaterals against their margin of trading in the form of cash, bank assurances, term down payments and Tradeflow Bullion Warrants, yet will now additionally be able to use UK and United States Government Treasury Bills, bonds, and other accepted fixed income safety and securities. The increased security basket will aid members efficiently utilize their financial resources and maximize financing expenses.
Les Man, Chief Executive Officer of the DGCX, commented: We are delighted to partner with Standard Chartered Bank to expand our collateral basket. By allowing market participants to offset their margin obligations with global securities, we will increase clearing efficiencies and support further liquidity in the DGCX marketplace. The new offering will not only add value to clearing members further helping them to deploy their assets, but will also provide additional security given its backing from one of the worlds most reputable banks.
Motasim Iqbal, Head of Deal Banking, Standard Chartered Bank, UAE said: With our rich history of 60 years in the UAE, Standard Chartered is well positioned to leverage its extensive global network and capabilities to ensure our clients financial needs are catered to in an efficient and smooth manner.
DCCC operates as a Central Counter Party (CCP) offering fully integrated clearing up and settlement services and collateralization of exchange traded by-products. DGCX/DCCC members and their clients profit immensely from secured negotiations and resources effectiveness afforded to them through margin offsets and a wide variety of security as compared to any other CCPs in the region. DCCC has handled DGCX' clearing up considering that creation without a solitary default and is recognized as a Third-Country CCP (T-CCP) by the European Securities and Markets Authority (ESMA), Abu Dhabi Global Markets (ADGM) and the Dubai Financial Services Authority (DFSA) amongst various other overseas regulatory authorities
