BOC first Chinese bank of settlement for DGCX
DCCC operates as a Central Counter Party, CCP, offering fully integrated clearing and settlement services and collateralisation of exchange traded derivatives.
Dubai Gold and Commodities Exchange, DGCX, has announced the appointment of the Bank of China (BOC), as a Settlement Bank for Dubai Commodities Clearing Corporation (DCCC) which is a wholly owned subsidiary of DGCX.
With the addition of Bank of China, DCCC has expanded its network of Settlement Banks to five with Emirates NBD, Standard Chartered, HSBC and Bank of Baroda as existing Settlement Banks. Bank of China is the first Chinese bank to be appointed as a Settlement bank and would be operating through its Abu Dhabi branch. This partnership will enable DCCC members to open their settlement banks account and process their settlement obligations for the trades executed on DGCX along with other services offered by the bank.
DCCC operates as a Central Counter Party, CCP, offering fully integrated clearing and settlement services and collateralisation of exchange traded derivatives. DGCX/DCCC members and their clients benefit immensely 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. DCCC has been the first CCP in the region to tie up with Euroclear and Clearstream to provide efficient collateral management solutions.
In 2015, Bank of China was enrolled again as a Global Systemically Important Financial Institutions, G-SIFI, becoming the sole financial institution from emerging economies to be enrolled for five consecutive years. The Bank of China Abu Dhabi Branch started operations in January, 2015. The branch provides corporate and institutional banking services in nine major currencies, including RMB, AED and USD.
Gaurang Desai, Chief Executive Officer of DGCX, said, "We look forward to Bank of China joining our DGCX fraternity and provide our market participants with world class settlement services. Having such a world class organisation complements DGCX's strategy of diversification."
Tian Jun, General Manager of Bank of China Abu Dhabi branch, said, "In May 2015, BOC and DGCX signed an MoU which sets out a platform and a framework of cooperation in areas of common interest. Thursday's agreement will significantly accelerate the interaction and collaboration between the derivatives and financial markets of China and the UAE. I believe this is a good opportunity to bring greater diversity to products available to investors in both China and UAE."
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