DMCC introduces new commodities platform
Dubai Multi Commodities Centre (DMCC) has launched electronic system Tradeflow to bring together all parties involved in inventory-based financing.
The new system is an enhanced version of DMCC’s global multi commodities receipt (GMR) which was introduced in 2004 as a commodity finance risk mitigation tool.
"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," says DMCC 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 adds.
Through the platform, owners of goods stored in rated warehouses in the UAE can request warehouse keepers to issue trade flow warrants to represent the ownership of their goods. In turn, 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.
Paul Boots, director of DMCC Tradeflow comments: "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."