Dubai Multi Commodities Centre (“DMCC”), the Middle East’s leading commodity centre, has announced the launch of DMCC Tradeflow, a significantly enhanced platform to the previous multi award-winning Global Multi Commodities Receipt (GMR) that was introduced in 2004 as a commodity finance risk mitigation tool.
DMCC Tradeflow is an electronic system that brings together all parties involved in inventory-based financing. Through the platform, owners of goods stored in rated warehouses in the UAE can request warehouse keepers to issue “Tradeflow Warrants”, which represent the ownership of their goods. These 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.
The new DMCC Tradeflow platform has been designed following feedback from DMCC’s commodity members, regional banking institutions, UAE’s warehouse operators and the international marketplace.
While building on the basic principles and standardised contractual framework of the GMR, the changes put into place bring increased security features, enhanced user experience, and full audit trails of all user actions to the web-based service.
All features of the platform have been developed according to international trade finance and banking best practices, in addition to facilitating financial institutions’ compliance with Basel III stipulations. As a direct result of demands from financiers from around the world, DMCC Tradeflow also introduced for the first time a Warehouse Inspection and Ratings Programme for the international commodities industry.
Ahmed Bin Sulayem, executive chairman, DMCC, said, “This enhanced platform, named DMCC Tradeflow, builds on our impressive track record and further delivers products and services to facilitate the global commodities trade. 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.”
Paul Boots, director, DMCC Tradeflow, added, “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. With DMCC Tradeflow we provide just that.”