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DMCC Tradeflow Reshapes Financial Risk Mitigation

Inventory-Based Financing Workflow

Feb 14, 2012 8:14 AM   By Jeff Miller
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RAPAPORT... The Dubai Multi Commodities Centre (DMCC) launched DMCC Tradeflow, the center's  new commodity finance risk mitigation tool.  DMCC Tradeflow  brings together all parties involved in inventory-based financing. Through the electronic platform, owners of goods stored in rated warehouses across the UAE can request warehouse keepers to issue “Tradeflow Warrants,” and then these warrants can be used to pledge beneficial ownership or transfer title of the stored goods to financiers as collateral in return for working capital.

While building on the basic principles of the previous system, Global Multi Commodities Receipt (GMR),   DMCC Tradeflow offers increased security, an enhanced user experience and a full audit trail.   DMCC Tradeflow also introduced a ''Warehouse Inspection and Ratings Program'' for the international commodities industry.

Ahmed Bin Sulayem, DMCC's executive chairman, 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 Program benchmarks warehouses against a five-star rating model based upon 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, the director of 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.''

 

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Tags: commodities, DMCC, Dubai, Jeff Miller, tradeflow
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