Dubai Commodities Clearing Corporation (DCCC) Secures Renewed Recognition as Third Country CCP by ESMA

The Dubai Commodities Clearing Corporation (DCCC), a leading Central Counter Party (CCP) in the region and a wholly-owned subsidiary of the DGCX, yesterday announced the renewal of its recognition as a third country CCP (TC-CCP) by the European Securities and Markets Authority (ESMA).

The announcement reflects the DCCC's adherence to international regulatory standards and confirms its alignment with stringent risk management and governance frameworks. The clearinghouse was first recognized as a TC-CCP in 2017 – and currently provides clearing services to numerous banks and financial institutions around the globe.

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As a result of the renewal, the DCCC will continue to be considered as a Qualifying Central Counterparty (QCCP) as per European banking regulations. This will enable all European banks to clear trades settled through DCCC without incurring additional capital requirements as imposed by EU Regulations.

Les Male, CEO of DGCX and DCCC, said: "The recognition from ESMA affirms the DCCC's commitment to continuously enhance its regulatory oversight and align with the best international standards, as we seek to extend our centralized clearing services to other exchanges and financial institutions around the world. It also ensures that we remain at the forefront of providing efficient and highly regulated risk management solutions for our members, as well as the global trading community."

In 2022, the DCCC cleared 1,676,185 contracts with a total value of USD 35 Billion. The clearinghouse provides robust risk management as well as secured settlement services across a broad range of asset classes; encompassing base and precious metals, hydrocarbons, currencies, and equities. As an intermediary or counterparty to every trade, the DCCC acts as a buyer and seller for every trade – helping to mitigate risk and ensuring financial trades are completed.