DCR launch set for end-June

DUBAI - The much awaited launch of Dubai Commodity Receipt (DCR) is now taking concrete shape as Dubai Metals and Commodities Centre (DMCC) is all geared to launch its first marketing event by end of June 2004. Presently, DMCC is in midst of establishing core group of bankers, warehouses and collateral management and commodity inspection companies.

By Sandhya D'mello

Published: Tue 1 Jun 2004, 10:21 AM

Last updated: Thu 2 Apr 2015, 12:00 PM

David Rutledge, Executive Director, Commodities, DMCC, said: "Currently we are in stage of finalising bankers, warehouse companies, collateral management and commodity inspection companies. We have to short list from15-20 bankers who have evinced initial interest in DCR, about 10-12 warehouse companies have expressed their interest to join the core group and about 3-4 collateral management companies have approached DMCC to offer their services. Names of these core group participants cannot be revealed at this stage due to the confidentiality."

DMCC had officially announced the launch of DCR earlier, during the launch of Dubai Tea Trading Centre. After tea, the DMCC is reported to be working on 3-4 more commodities. Rutledge, said: "The DMCC has identified many target groups for the initial launch of DCR. The product is essentially a trade finance tool which may possibly evolve into a trading platform in future. The scheduled marketing event will first see the launch of DCR in Dubai."

On success ratio of DCR, Rutledge, said: "We are optimistic of the success of DCR as the initial core participants would be the companies who trade in commodities and will require bankers, warehouses and collateral management companies and hence chances of converting these conventional trading companies into the more market savvy DCR would not be difficult as these services will help the trade in reducing their cost of operation coupled with secured and transperant transactions."