Global Multi Commodities Receipt
The first online electronic warehouse receipt platform in the region with global coverage
Popularly known as the “City of Gold” and “World Class Commodities Trading Hub”, Dubai has gained prominence as being proclaimed as a leading global business hub in the Middle East. Over the past decade, the city of Dubai has contributed significantly to the global gold and commodities market and is now a business centre of international acclaim.
The Dubai Multi Commodities Centre (DMCC) was established as a strategic initiative of the Government of Dubai, to create a level playing field for all participants of the gold and commodities industry by introducing transparent and fair rules for business conduct. This also includes the integration of the complete value chain for trading and distribution of gold and commodities in and around the U.A.E.
Keeping in line with its vision to facilitate the expansion and development of the gold and commodities industry, DMCC introduces the Global Multi Commodities Receipt (GMR)), which is an innovative tool of accessing trade financing.
GMR is an electronic warehouse and vault receipt system that provides members real-time access to the various forms of commodities, either raw, semi-finished, finished products stored in a DMCC approved storage facility for that respective commodity.. An approved storage facility operator or collateral manager issues a GMR on the depositing of the commodity by a trader/business entity. GMRs are negotiable instruments and can be endorsed by way of transfer to another trader or pledged and endorsed by way of security to a participating financier in order to obtain financing. A participating financier may request the commodity, that is the subject of the GMR, to be tested and verified by an approved tester. The GMR system provides the market participants a secure electronic platform for interaction and conducting their trade finance activities. All activities undertaken on the GMR system are governed by set legal framework established by DMCC.
The Global Multi Commodity Receipt product suite consists of the Dubai Commodity Receipt (DCR), the International Commodity Receipt (ICR) and the Dubai Gold Receipt (DGR).
The DCR covers storage of goods within the UAE and the ICR covers goods stored in selected global locations. Currently the ICR coverage includes Singapore, Malaysia and S. Korea and it is planned for roll-out in Europe and North America . The DGR covers gold and precious metals stored in vaults in the UAE.
“The Global Multi Commodities Receipt product suite has the unique flexibility of serving several business needs. In addition to facilitating the financing of goods, it may be used as a title document in the trading of goods and for physical delivery of commodities from selected global locations into the Dubai Gold and Commodities Exchange under the contracts traded.” - Ahmed bin Sulayem, Executive Chairman, DMCC.
“As a key component of the commodities market infrastructure, the Global Multi Commodities Receipt platform is designed to assist traders in securing finance from Banks to support their inventory holdings and has been tailored for use by Banks as an effective risk mitigation tool.” - David Rutledge, former CEO, DMCC.