ADX and DGCX Agree to Collaborate on a Unified Clearing House in the UAE
(PRWEB) July 11, 2017 -- The Abu Dhabi Securities Exchange (ADX), a leading securities exchange in the region, signed a Memorandum of Understanding (MoU) with Dubai Gold and Commodities Exchange (DGCX), the region’s largest and most diversified derivatives bourse, and its parent company, DMCC (Dubai Multi Commodities Centre) to create the basis for collaboration on a unified Clearing House (CCP) in the UAE.
The MoU was signed by Rashed Al Blooshi, Chief Executive, ADX; Gautam Sashittal, Chief Executive Officer, DMCC and Member of the DGCX Board of Directors; and Gaurang Desai, Chief Executive Officer, DGCX and Dubai Commodities Clearing Corporation (DCCC).
Commenting on the initiative, Ahmed Bin Sulayem, Executive Chairman, DMCC, said: “This is a unique collaboration which we expect will lead to the creation of a national clearing house with the size, scale and capability to clear all asset classes."
Additionally, this collaboration aims to promote a stronger cooperation across a number of areas, including clearing and settlement of equities, commodities, currencies, OTC instruments and derivatives products, as well as support with the listing of respective products and securities.
Rashed Al Blooshi, Chief Executive of ADX, said: “This memorandum will provide a framework for understanding and collaboration between ADX and DGCX. As a home-grown entity just like the DGCX and DMCC, we are deeply committed to accelerating the growth and development of the UAE financial markets and raising the bar in terms of trading and clearing standards. We see this as the beginning of a long and prosperous relationship that will open up new opportunities to mutually benefit both exchanges.”
“Moreover, the signing of this MoU comes in accordance with ADX strategic goals to increase market cap and product range as well as attract and activate a wider range of investors. In accordance with Abu Dhabi Plan, ADX is committed to creating a business environment that is both competitive and flexible in the framework of enhancing the competitive environment for doing business and attracting investment into the Emirate,” added Al Blooshi.
Gaurang Desai, Chief Executive Officer of DGCX and Dubai Commodities Clearing Corporation (DCCC), said: “We are delighted to partner with ADX. We believe that this will build a strong market connect within the UAE, especially in the areas of clearing and settlement. As the largest and the only multi-asset CCP in the region that is globally recognized, DGCX and its wholly owned CCP, DCCC, has a pioneering role to play in ensuring that it extends itself as a strong clearing base for partner exchanges, not only in the UAE, but also in the wider region.”
DCCC, a wholly owned subsidiary of DGCX, was recently recognized by ESMA as a Third-Country CCP. Having handled DGCX’s clearing without a single default since inception, DCCC has earned itself the reputation of being a credible and reliable partner for clearers, clients and market participants of the DGCX. DCCC is the only CCP in the Middle-East that offers clearing services across multiple asset classes: FX, Precious Metals, Energy and Equity Derivatives. DCCC offers Clearing Members the option of settlement in multiple currencies along with accepting a wide range of collaterals against margins.
Henriette, DMCC, http://www.dmcc.ae, +971 562163031 Ext: 971, [email protected]
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