Euroclear has announced that the Dubai Commodities Clearing Corporation (DCCC) has joined its Collateral Highway network, the first firm from the Middle East to do so.
DCCC is responsible for guaranteeing the settlement of trades made on the Dubai Gold and Commodities Exchange (DGCX). The deal will allow clients on DGCC and DGCX to use eligible securities held at Euroclear Bank as collateral for trades executed on the exchange, to fulfil initial and variation margin quotas at the central counterparty (CCP). The project is scheduled to begin full operation in early 2014.
"Extending our global Collateral Highway to the Middle East is another milestone in our plans to improve cross-border collateral mobility," says Tim Howell, CEO at Euroclear. "It also underscores our commitment to clients and market infrastructures in the Middle East and North Africa 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 DCCC as the first CCP in the Middle East to join the Collateral Highway."
CCPs are emerging as a vital part of market infrastructure, acting as middlemen in a trade. The CCP is a buyer to every seller and a seller to every buyer, guaranteeing both sides of the trade in the event of counterparty default.
While at Sibos Toronto, James shares some interviews covering topics on blockchain, fintechs and cybersecurity.Subscribe to Weekly Wrap emails