Dubai Commodity Receipt model to be showcased at the International Warehouse Receipts Financing conference in Rotterdam

The Conference, organized by leading commodities consulting firm, Day Robinson International, will be held on 29-30 June.

DMCC Executive Director Commodities, Dr. David Rutledge, will be a key speaker at the event where he will describe in detail the innovative Dubai Commodity Receipt (DCR) system

The DCR system, due to be implemented in June this year, is unique among warehouse receipt systems around the world in that it is a closed electronic system with direct participation by commodity traders, warehouse operators, collateral managers and banks.

Developed specifically for the dynamic and rapidly growing Dubai market, the adaptation and development of the DCR to legal imperatives and business reality is a case study of broad interest to the international commodities sector.

Rotterdam is a global centre of worldwide significance for commodity warehousing and trade finance, and DMCC's participation in the Rotterdam Conference reinforces the standing of DMCC as an innovator in this global marketplace.

Dr. Rutledge said: "The two day conference will bring together industry leaders from the commodity trading, storage and banking sectors. It is the perfect opportunity to unveil the pioneering DCR, a product designed to meet the needs of all these market participants.

The conference will focus on how to secure commodity inventories held in warehouses worldwide in a safe and secure environment to manage risk, avoid fraud and provide a safe and profitable financing environment for both lenders and borrowers across a range of transaction structures. In addition to Dr. Rutledge, speakers from the USA, Africa, UK, Switzerland, Netherlands will present papers at the conference.

"DCR is set to have a major impact on facilitating the further growth of the commodity sector. We believe that the DCR concept can play an integral role in helping to significantly increase confidence among all parties about the security of all types of inventory held in warehouses. The Rotterdam conference provides us with the right platform to position the innovative DCR as an exciting new model to deal with this important commercial issue." said Dr. Rutledge.

"The electronic DCR system offers great efficiencies in commodity trading, finance and storage. And it can be applied to all types of commodities."

Developed with the guidance of an expert committee representing the finance, warehousing and trade sectors in Dubai, the DCR has already attracted a considerable amount of local, regional and international interest from potential members covering the scope of international banks, leading warehousing companies and members of the trade.

When operational, DCRs will be issued by DMCC-approved warehouse operators and collateral managers, and will evidence the existence of physical commodities in store in Dubai. DMCC believes that traders in soft commodities, metals, textiles and electronic goods, among others, will have an interest in using the system.