DCCC expands collateral basket to include major currencies
DUBAI, March 28, 2016
The Dubai Commodities Clearing Corporation (DCCC), the central counter-party (CCP) for the Dubai Gold and Commodities Exchange (DGCX), said that clearing members will now be able to deposit cash collateral to the corporation in the form of euro, UK pound and Japanese yen (JPY) in addition to UAE dirhams and US dollars.
This new FX collateral service will allow clearing members to utilise these currencies against their Margin commitments without having to actually convert these currencies into equivalent US dollars.
The facility has been made available through their multi-currency state-of-art DCCC's EOS-Clear platform.
Gaurang Desai, chief executive officer, DGCX, said: "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." - TradeArabia News Service
