Dubai Multi Commodities Centre (DMCC) has expanded the geographical footprint of the Dubai Commodity Receipt (DCR) - its innovative electronic warehouse receipt model – to have a global reach.

The move comes on the back of the significant success achieved by the DCR to facilitate trade and commodity financing within the UAE, and is expected to generate greater awareness and usage of the unique capabilities of the new international model the “Global Multi Commodities Receipt” (GMR).

DMCC embarked on a roadshow to create  awareness of the international model starting with Singapore on November 19, where the GMR was showcased to commodity traders, banks, collateral managers and warehouses, said an official spokesman.

DMCC’s electronic warehouse receipt system is designed to facilitate trade and commodity financing, and allows businesses to access lines of credit against their inventories by pledging them in favour of member banks.

It is also used for electronic transfer of title to the goods covered by it, to others within the system, through a transfer endorsement. Members are thus provided with the opportunity to trade their goods with increased confidence among a network of approved associates.

The transfer functionality also enables physical deliveries under the commodity futures contracts traded on the Dubai Gold and Commodities Exchange (DGCX), which is 51 per cent owned by DMCC.

With GMR, the enhanced international model, the physical deliveries of commodities to the DGCX can be extended to include globally selected delivery points.
                                            
“As an enhanced technology platform, the GMR is a strategic initiative aimed at boosting the commodities trade. We have taken warehouse receipts to a new level with an innovative global model with Plastics being the next focus of our commodities portfolio, the GMR will be a crucial tool for undertaking delivery of commodities into the DGCX from various locations outside of the UAE,” said CEO, DMCC, Dr David Rutledge.

“Electronic warehouse receipts are currently available in several countries worldwide but their operation is usually limited to the respective countries. The global reach of the GMR would allow traders from around the world to trade on the DGCX with greater ease, real-time efficiency and security,” he added.

“The GMR is a vastly improved warehouse receipt framework providing trading opportunities through electronic title transfer as well as facilitating trade financing from banks. The online GMR model is unique as it provides access to selected global delivery points, and presents a significant opportunity to fill the gaps in markets where warehouse receipts are currently unavailable,” said director, commodity finance, DMCC, Ashok Das. – TradeArabia News Service