An innovative trading platform to register ownership of commodities
DMCC Tradeflow is a dedicated flexible and customised online platform for registering possession and ownership of commodities stored in UAE based storage facilities. It is a specialised, interactive ownership registry that brings together all stakeholders related to the trade and financing of physical commodities. Established in 2004 as a warehouse receipt system, DMCC Tradeflow has evolved to regulating and documenting commodity trading operations in the UAE as part of the Dubai Government.
DMCC Tradeflow provides many online services aimed at facilitating collateral financing and Commodity Murabaha trading. These services include the registration of ownership for commodities, endorsement of pledges and title transfer offering a UAE-based pool of commodities available for trade in a transparent and efficient Sharia compliant environment.
There are several advantages to DMCC Tradeflow
Our fully electronic web-based trading platform offers Murabaha transactions in physical commodities and the ability to undertake multi-commodity and multi-currency trades from all around the world, supported by UAE-based assets that comply with Sharia compliance criteria.
Launched in 2016, Salam enables forward-financing of transactions, where payment is made in advance for goods to be delivered at a future date. The financial institution pays in full for buying a specific quantity of commodities, at an agreed level of quality, which the seller will supply on a pre-agreed date.
DMCC Tradeflow provides a range of risk management solutions across the commodity inventory financing value chain. These are backed by standardised and enforceable legal conditions designed to address the specific needs and requirements of the industry.
Follow these simple steps
We offer five types of membership: owners; financiers; storage operators; warehouse inspectors; and quality inspectors.
Commodity traders and asset owners who have assets stored in warehouses or vaults in Dubai.
Banks or finance houses that wish to book a security interest over the stored assets that they are financing.
Warehouse keepers, vault operators or collateral managers who are responsible for the storage of the assets and issuance of the Tradeflow Warrants.
Approved collateral managers or quality certification companies that act on behalf of owners and financiers to ensure warehouse facilities meet required standards.
Independent inspectors that can act on behalf of owners or financiers to ensure the quality of stored assets meet required standards.
Complete the form and prepare the documentation required, which is listed on the page.
Please sign the Letter of Adherence on your company’s letter-headed paper to confirm your understanding and acceptance of the Corporate Access Agreement terms.
Please note, if signing as a storage operator, you also need to download and sign the Warehouse Agreement.
Finally, please submit the relevant documentation with the annual membership fee of AED 5000.
Annual membership fee is charged on a pro rata basis calculated from date of joining.
Membership is inclusive of full user training and ongoing support.
Additional services available to our members
Due to perceived risks associated with providing finance against assets stored in warehouses, financiers can be reluctant to use professional inspection services for such facilities. In response to this need, we have implemented a Warehouse Inspection & Ratings Programme as a DMCC Tradeflow initiative to certify storage operators and assign a transparent one to five-star rating system based on key criteria.
The Dubai Gold and Commodities Exchange (DGCX) is the region’s leading derivatives exchange. In 2012, it selected DMCC Tradeflow as sole provider to handle all its physical delivery needs. Our central registry allows DGCX clearing members and trading participants to transfer the document of title for stored goods in the form of DMCC Tradeflow Warrants to settle trades and close contracts.
We handle a diverse range of trading relationships, connecting disparate parties worldwide. Where there are barriers to communication or trust between commodity traders, our Escrow service gives transactions an added layer of security. Acting as the trusted facilitator for the transfer of title ownership between parties, we issue a warrant and place the goods in escrow until payment is confirmed.
Providing undisputed proof of ownership
At the core of the platform is the electronic central registry of ownership for commodities. Using negotiable title documents – DMCC Tradeflow Warrants – it provides undisputed proof of ownership and security interests attached to UAE-based inventories. For the first time in the region, the central registry enables ownership of commodities to be registered in one place through electronic title documents.
Electronic documents of title are issued by storage operators to provide evidence that a specific quantity of a particular commodity is stored at a DMCC-approved location. The warehouse operator warrants or guarantees to hold the stored commodity in safe custody, implying that while they are legally liable for any value lost through theft or damage, they do not have legal ownership of the goods.
Title transfer enables financiers to reduce and mitigate risk while providing capital relief. Changes in the financial environment combined with Basel II and III regulatory requirements have tightened liquidity across the commodities supply chain. Title transfer structures give global financiers reassurance that borrowers cannot dispose of financed inventories without their knowledge and approval.
You can register enforceable pledges as collateral in return for finance to use as working capital. Using DMCC Tradeflow, this allows commodity owners to mortgage their goods to the financier as security to guarantee a loan. In the case of a dispute, holding this security interest gives the financier certain preferential rights in the disposition of secured assets.
Maximising mutual respect and transparency
To ensure all DMCC members comply with our code of conduct, our regulations clearly explain the roles and responsibilities of each member when dealing with the system and each other. These rules also clarify what legal procedures would apply in case of default. This ensures transparent resolution of any disputes to reduce risks and potential uncertainty for all parties. Integral to each transaction, DMCC Tradeflow generates a standard electronic contract recognised under UAE law and signed electronically by members and system users. These standardised contracts significantly reduce the legal costs of drawing up individual contracts for every transaction.