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DGCX clearing agency expands collateral basket

Dubai - This new FX collateral service will allow clearing members to utilise these currencies against their margin commitments without having to convert these currencies into equivalent US dollars.

The Dubai Commodities Clearing Corporation (DCCC), the central counterparty for the Dubai Gold & Commodities Exchange (DGCX), on Monday announced that clearing members will now be able to deposit cash collateral in the form of euro, UK pound and Japanese yen 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 convert these currencies into equivalent US dollars. The facility has been made available through their multi-currency EOS-Clear platform.
Gaurang Desai, CEO of DGCX, said: "Expanding our cash collateral offering to members 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 clients. These new services have been designed to provide greater capital efficiency and boost liquidity in the DGCX marketplace."
DCCC operates as a central counterparty offering clearing and settlement services and collateralisation of exchange-traded derivatives. DGCX/DCCC members and their clients benefit from secured settlements and capital efficiency afforded to them via margin offsets and a wide range of collateral compared to any other CCPs in the region.
DCCC has been the first CCP in the region to tie up with Euroclear and Clearstream to provide collateral management solutions.
- business@khaleejtimes.com