Business | Markets
DMCC launches new financing tool
The Dubai Multi Commodities Centre (DMCC) on Sunday unveiled the Global Multi Commodities Receipt (GMR) suite.
- Staff Report
- Published: 00:16 May 19, 2008
Dubai: The Dubai Multi Commodities Centre (DMCC) on Sunday unveiled the Global Multi Commodities Receipt (GMR) suite.
GMR is designed to facilitate trade and commodity financing across international markets. It allows businesses to access lines of credit against their inventories by pledging them in favour of member banks.
It is also used for electronic transfer of title to the goods covered by it, to other members within the system. Members are thus provided with the opportunity to trade their goods with increased confidence among a network of approved associates.
Reducing risk
David Rutledge, CEO, DMCC, said: "GMR is an innovative financing tool that enables banks and financial institutions to mitigate risk in a financing transaction, thus creating an environment conducive for the growth of commodity trade finance.
"Having achieved significant success with the UAE-based model, we are now extending the reach of the GMR platform to Singapore, South Korea and Malaysia, with plans to include other destinations in due course."
The GMR platform allows members to link with an extensive international network of traders, banks, financiers and service providers in the commodities industry. While the commodities being transacted must be physically stored in an approved facility and jurisdiction, this system facilitates transactions among members worldwide.
In addition, the GMR system is also used for delivery of physical commodities into the Dubai Gold and Commodities Exchange (DGCX).
The electronic title transfer facility enables DGCX members to perform their delivery obligations against their futures contracts. With the GMR now being operative in Singapore, Malaysia and S. Korea, deliveries to the DGCX from these global locations can now be undertaken.
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