Enhanced successor to DMCC's Global Multi Commodities Receipt (GMR) platform

Dubai commodities industry to benefit from improved liquidity

Introduction of Warehouse Inspection & Ratings Programme as increased risk identification offering for financial institutions and commodity traders in the UAE

DUBAI, UAE; 14 February 2012: Dubai Multi Commodities Centre ('DMCC'), the Middle East's leading commodity centre, today 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:

"In 2004, DMCC launched the multi-award winning GMR platform, meeting the needs of the global trade finance market. The 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."

The new Warehouse Inspection & Ratings Programme benchmarks warehouses against a 5-star rating model based on an extensive set of 400 unique criteria, allowing financiers and owners access to much greater transparency of storage risk. Global logistics service providers Steinweg Sharaf Fze, RHS Logistics and RSA Logistics have already been issued with a Warehouse Rating Certificate. All types of warehouses from all levels can participate in the rating system as soon as they are registered on the DMCC Tradeflow service.  

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."

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About DMCC
The Dubai Multi Commodities Centre (DMCC) is a strategic initiative of the Government of Dubai, was established in 2002, with a mandate to provide the physical, market and financial infrastructure required to set up a commodities market place in Dubai. The Centre attracts key players throughout the entire value chain of a wide range of commodities sectors, together with relevant support industries such as finance, logistics and insurance. DMCC has established a robust infrastructure, including free zone status, trade networking platforms, secure vaults and purpose-built storage facilities. Resident companies of DMCC are offered highly attractive benefits under a free zone status, including a 50-year guaranteed tax holiday, 100 per cent business ownership, full ownership of business premises, and a secure regulated environment. DMCC has also implemented a dedicated compliance policy in the organisation, which is in line with the compliance related laws and regulations of the UAE Federal Government and the competent international bodies. DMCC owns three fully operational towers which host the majority of the physical, market and financial infrastructure including the Jewellery & Gemplex facility, the specialized diamond and pearl exchanges and gold vaults.

About DMCC Tradeflow
Following the success of the GMR service, and in order to further develop a secure, efficient and enforceable environment for the provision of trade financing, DMCC introduced DMCC Tradeflow, an inventory management service that gives warehouses access to a larger commodity storage market.

DMCC has an existing foothold in the trade finance market and previously established relationships with the principle banks and traders who have been benefiting from GMR. The creation of DMCC Tradeflow was a natural progression, and was launched to further promote a high level of confidence between parties in the commodities trade finance industry.

DMCC Tradeflow's robust legal framework allows for the creation of a valid pledge in favour of financiers who are then able to better identify the risk of their exposure. The introduction of a warehouse inspection and ratings programme represents a major value addition for the new service, particularly for financiers, as it will provide them with clear standards against which to assess their storage facility risk.

The DMCC Tradeflow warehouse ratings programme will use a star rating model, whereby warehouses will be given one to five stars depending on the quality of their facility, organisation, system, services and security. All types of warehouses from all levels will be able to participate in the rating system, subject to DMCC Tradeflow membership.

Dubai Multi Commodities Centre
Sandra Vetter Sloan
Director, Marketing & Communication
+971 4 433 6274
sandra.sloan@dmcc.ae

Brunswick Group
Jade Mamarbachi
+971 50 600 3829
dmcc@brunswickgroup.com  

© Press Release 2012