DGCX offers new settlement services based on Cinnober technology

The Dubai Gold & Commodities Exchange (DGCX) and its central counterparty service provider, the Dubai Commodities Clearing Corporation (DCCC), have launched a new settlement service that will enhance trading and cost efficiencies for clearing members. Behind their state-of-the-art EOS platform stands technology supplier Cinnober.

DCCC has now activated the multi-currency clearing and settlement facilities that are part of Cinnober’s RealTime Clearing solution. Clearing members are now able to settle their transactions in several different currencies. In addition, DCCC will be able to receive fixed deposits and bank guarantees as collateral in several currencies.

Besides the powerful multicurrency settlement model, the new version of the system also enhances the collateral management model. This allows members to pledge more kinds of collateral to DCCC.

“We are delighted to introduce the new settlement facilities in UAE Dirhams,” said Gaurang Desai, Interim CEO of DGCX, in an official statement at the launch. “These new facilities, launched on the occasion of the 43rd UAE National Day, will generate significant additional trading and settlement efficiencies for our members. The new AED banking facility provides significant value for members who maintain AED accounts, while the new AED collateral facility will provide them an avenue to generate better returns. These new services have been designed to provide greater capital efficiency and boost liquidity in the DGCX marketplace.”

DGCX began its partnership with Cinnober in the summer of 2012 to develop a new trading and clearing infrastructure. Less than a year later, the new EOS platform was launched and DGCX has since then been breaking and re-breaking trading volume records. Based on this exceptional innovation-led growth, DGCX was recently designated Exchange of the Year 2014 in the Middle East and Australia by Futures & Options World (FOW) — an award they also took home in 2013.

The core trading and clearing applications of DGCX technology infrastructure are built on Cinnober’s TRADExpress Trading System and TRADExpress RealTime Clearing, multi-asset solutions that deliver market-leading functionality, speed and throughput capacity.

“As technology partner to DGCX over the past years, we are of course extremely pleased that their award-winning track record is so clearly linked to their technical systems,” says Veronica Augustsson, CEO of Cinnober. “Real-time clearing is very much in focus and DGCX’s new capabilities exemplify in a good way the exchange’s visionary and expansive thinking.”

The DCCC acts as the clearing house for DGCX and is therefore the central counterparty for each trade carried out on the Exchange. DGCX is the only Exchange in the region with local clearing house facilities — helping to safeguard participants against counterparty risk by acting as the seller to every futures contract bought and the buyer to every futures contract sold, thereby guaranteeing settlement.