Clearing

DGCX has established a wholly owned subsidiary, Dubai Commodities

Clearing Corporation (DCCC) for undertaking all clearing, settlement &

risk management functions. DCCC becomes the central counterparty

for all deals executed on DGCX trading platform through the process

of novation, whereby it acts as a Seller to all Buyers and Buyer to all

Sellers on the Exchange. DCCC provides Settlement Guarantee for all

deals executed on DGCX platform. This provides a tremendous confidence

to market participants as the counter-party risk is eliminated in this process.

In order to protect market participants from any counter party credit

risk, DCCC has established a Settlement Guarantee Fund (SGF). The

settlement guarantee provided by DCCC is underpinned by a system of

initial margin, daily marking-to-market procedures and additional margins.

The corpus of the Settlement Guarantee Fund is made up of commitments

from clearing members, insurance policy held by DCCC and line of credit

extended by the Exchange.