DMCC to introduce more commodity-specific 'Dubai Commodity Receipts'

He shared DMCC's future plans while presenting Dubai's innovative DCR system at the Global Warehouse Receipt Financing Conference in Amsterdam being held on 11th & 12th July 2006.

The proposed commodity specific DCRs are to cover 'Fuel Oil' and 'Steel Rebars' and are designed to facilitate financing and the undertaking of physical delivery under the proposed Futures contracts for such products being launched during the third quarter of 2006.

DMCC had initially introduced the DCR system in 2004, involving the 'Field' warehousing of a broad range of commodities and to be used as a risk mitigation tool by Banks to facilitate trade and commodity financing. It then extended the system last year to include the Dubai Gold Receipt (DGR), designed specifically for the Gold industry and reinforcing Dubai's role as a global leader in Gold trade.

Speaking at the Amsterdam conference Dr. Rutledge said:

"DMCC is probably the first to offer an electronic warehouse receipt - the DCR in the Middle East. Regulated and administered by DMCC, the DCR is governed by a transparent legal framework adopting global best practices."

"Operating on a web-based platform that eliminates paper work and provides instant global access, it can cover any commodity stored in a 'Field' warehouse," he said. "It offers flexibility and can be either be 'pledged by way of security' or 'endorsed by way of transfer'. The DGR launched last year, is being used also for physical deliveries under the Futures contracts for Gold and Silver," added Dr. Rutledge.

The Global Warehouse Receipt Financing Conference in Amsterdam is attended by Structured Trade and Commodity Finance specialists from global banks and other industry leaders. It will deliberate on current developments and issues with specific 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, notable speakers from the US, Africa, Europe and Asia are expected to present papers and be involved in panel discussions at the Conference.

Strategically located on the East-West and North-South trade routes, the DMCC is ideally positioned to serve the large and diverse regional markets by offering world class infrastructure and services to support commodity processing and trade with the objective of promoting Dubai's status as a global trade hub.