Tuesday, 10th May 2005 (2705 views)

The Dubai Metals and Commodities Centre (DMCC) has unveiled the Dubai Gold Receipt (DGR), a new tool for the gold trade.

The state-of-the-art financing product is an electronic vault receipt system offering an efficient and effective means for the gold trade to access additional lines of finance.

The web-based system provides members with secure, real-time access to the various forms of gold bars, scrap, coins and jewellery, stored in DMCC approved premises. The system is now open for membership to gold traders, vaults and collateral managers, testers and banks and DMCC claims to have already signed up founder members from the international and regional banking sectors as Security Beneficiaries, including HSBC, National Bank of Dubai, National Bank of Fujairah and Standard Bank

The DGR aims to reinforce Dubai's role as a global leader in the gold trade and support the rapid expansion of the sector in the region, AME Info reports. The DGR's are negotiable instruments and can be endorsed by way of transfer to another trader or pledged and endorsed by way of security to participating banks in order to obtain financing.

Ahmed Bin Sulayem, chief operating officer of DMCC, said: "The DGR was developed by DMCC with the expert guidance of the Dubai Gold Advisory Group. Identified, as a much needed tool for the trade, DMCC innovated this product to support the specific needs of the trade."

The creation of the DGR follows the successful implementation of the Dubai Commodity Receipt (DCR) last year, which applies to the broad spectrum of commodities trade and has seen rapid uptake in usage by local and international bank and trade members.

 

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