DMCC launches commodity finance platform
Dubai, February 14, 2012
Dubai Multi Commodities Centre (DMCC) has announced the launch of DMCC Tradeflow, an electronic system that brings together all parties involved in inventory-based financing.
DMCC Tradeflow is a significantly enhanced platform to the previous multi award-winning Global Multi Commodities Receipt (GMR) that was introduced in 2004 as a commodity finance risk mitigation tool, the company said in a statement.
The launch comes as part of DMCC's plan to reshape the commodity finance landscape in the region, it added.
Through the platform, owners of goods stored in rated warehouses in the UAE can request warehouse keepers to issue “Tradeflow Warrants” which represent the ownership of their goods, the statement said.
These warrants can be used by the owners to pledge beneficial ownership or transfer title of the stored goods to financiers as collateral in return for working capital.
The new platform has been designed following feedback from DMCC’s commodity members, regional banking institutions, UAE’s warehouse operators and the international marketplace, said a senior official.
"In 2004, DMCC launched the GMR platform, meeting the needs of global trade finance market. This platform builds on our impressive track record and further delivers products and services to facilitate the global commodities trade," stated executive chairman Ahmed Bin Sulayem.
'We expect to witness increased access to trade finance for not only DMCC licensed companies but for commodity traders throughout the world who use Dubai as a trading hub,' he added.
The new Warehouse Inspection & Ratings Programme benchmarks warehouses against a 5-star rating model based on an extensive set of 400 unique criteria, allowing financiers and owners access to much greater transparency of storage risk.
Paul Boots, director of DMCC Tradeflow, said, "Given the increasing demand for global liquidity, a structured platform that facilitates financiers to lend with confidence in an environment where risks can be identified and mitigated is essential to ensuring the continued flow of global trade. With DMCC Tradeflow we provide just that."
Global logistics service providers SteinwegSharafFze, RHS Logistics and RSA Logistics have already been issued with a Warehouse Rating Certificate. All types of warehouses from all levels can participate in the rating system as soon as they are registered on the DMCC Tradeflow service.-TradeArabia News Service