Dubai
11 September 2013
Reporter: Georgina Lavers

First Middle Eastern CCP on the Collateral Highway


The Dubai Commodities Clearing Corporation (DCCC) has become the first central counterparty in the Middle East to join Euroclear’s global Collateral Highway.

The DCCC guarantees settlement for all trades executed on the Dubai Gold & Commodities Exchange (DGCX), which is supported by a system of initial and variation margins.

Scheduled for full operation in early 2014, the exclusive agreement with Euroclear will enable clients of DCCC and DGCX to use CCP-eligible securities held in Euroclear Bank—and in all other entities connected to the Collateral Highway—as collateral to fulfil initial and variation margin requirements at DCCC.

Tim Howell, CEO of Euroclear, said: “Extending our global Collateral Highway to the Middle East is another milestone in our plans to improve cross-border collateral mobility."

"It also underscores our commitment to clients and market infrastructures in the MENA region to ease cross-border flows and contribute to its appeal as one of the world’s high-growth regions. We are therefore very pleased to be able to welcome the Dubai Commodities Clearing Corporation as the first CCP in the Middle East to join the Collateral Highway.”

Gary Anderson, CEO of the Dubai Gold & Commodities Exchange (DGCX), said: “DCCC’s collaboration with Euroclear’s global Collateral Highway—the leading global market infrastructure to mobilise collateral across borders—will enhance distribution capabilities, help mitigate risks, lower costs and create greater efficiencies for the DGCX member community. We look forward to leveraging the strengths of both institutions to meet the collateral needs of DGCX market participants.”

Gaurang Desai, chief operating officer of the Dubai Commodities Clearing Corporation (DCCC), said: “At DCCC, it has been a constant endeavour to deepen our offerings and services to all our clearing members. As demand for collateral continues to grow, the partnership with Euroclear’s global Collateral Highway is particularly timely and important."

"By joining forces, we alleviate one of the challenges of collateral fragmentation by facilitating the seamless transfer of collateral to the right place at the right time. By offering increased flexibility and cost efficiencies, we hope to become the CCP of choice in the Middle East and North African region.”

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