Dubai's Commodities Clearing Corporation (DCCC) will allow its members to deposit cash collateral in euros, GBP and Japanese yen. 

The move by the DCCC, which provides clearing and settlement for the Dubai Gold and Commodities Exchange (DGCX), is designed to boost efficiency and reduce FX risk when member banks clear trades.

Previously the group only accepted UAE dirhams and US dollars, but the three additional currencies can now be used to fulfil margin commitments through the corporation’s clearing platform without the need to convert to US dollars. 

“The new facility provides significant value for clearing members who already maintain funds in these foreign currencies,” according to Gaurang Desai, chief executive of DGCX.

“These new services have been designed to provide greater capital efficiency and boost liquidity in the DGCX marketplace."

The DCCC was the first central counterparty (CCP) in the Middle East  to partner with Euroclear and Clearstream to provide joint collateral management solutions.