Dubai Multi Commodities Centre (‘DMCC’) has 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 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.”
Before joining SME Advisor as an Assistant Editor in 2010 I obtained a Bachelors Civil Law Degree (Hons) from the National University of Ireland, Galway, Ireland, in 2005. I worked as a trainee lawyer in Dublin, Ireland, specialising in defence litigation and criminal law before obtaining a Masters in International Journalism from the University of Cardiff in 2009. At present I am the Editor of SME Advisor Middle East, which is a publication within the CPI Business Group. You can follow me on twitter: @mikey_byrne or @SMEadvisorME. Also, you can join me on Linkedin (Mike Byrne) or at (SME Advisor).