A memorandum of understanding was signed between DGCX and ABN AMRO this week, naming ABN AMRO Clearing Bank N.V. as a Special Clearing Member for Dubai Commodities Clearing Corporation (DCCC), which is a wholly owned subsidiary of DGCX. The partnership will now enable DGCX members to process their clearing obligations for the trades executed on the exchange with the ABN AMRO, which covers 90 of the world’s leading exchanges across Europe, the Americas and Asia Pacific.
ABN AMRO will be among the few clearing banks of DGCX, the Middle East’s largest derivatives market, for settling the accounts of its members. DGCX/DCCC members and their clients benefit from secured settlements and capital efficiency afforded to them via margin offsets and a wide range of collateral compared to any other CCPs in the region.
In addition, the agreement will allow DCCC members to use ABN AMRO’s global post-trade services to access DGCX, which are useful in particular for proprietary trading groups, hedge funds and algorithmic trading firms that want to stay globally competitive with low latency strategies.
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DCCC operates as a Central Counter Party (CCP) offering fully integrated clearing and settlement services and collateralisation of exchange traded derivatives. The firm has been the first CCP in the region to tie up with Euroclear and Clearstream to provide efficient collateral management solutions.
Highlighting the significance of the move, Gaurang Desai, CEO of DGCX Group, said: “We are excited to welcome ABN AMRO Clearing as a new clearing member, as this will further augment our client base and widen participation to DGCX’s diverse product range. ABN AMRO Clearing is a global leader in clearing services and its addition to the DGCX community further demonstrates our ability to offer a platform for international banks to expand and build their global footprint in this region. As the largest derivatives exchange in MENA with full-fledged CCP operations, DGCX Group is well poised to offer global clients, secured settlements and capital efficiency, thereby helping them safeguard against potential counter-party risks.”
“We are pleased to be live on the DGCX offering clearing services and see it as an important link in our global offering. Our broad client base of liquidity providers will now be able to take advantage of our correlated risk tools for optimising collateral in a new jurisdiction and be able to bring the DGCX’s suite of products into their global portfolios”, added Martin Frewer, global director PTG at ABN AMRO Clearing.