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DME CR MEMBERSHIP AND ACCESS TO THE DME CR SYSTEM |
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1. What are the
categories of DME CR membership and what is the role
of each membership category?
There are five categories of DME CR membership,
of which four have access to the DME CR System for
the purpose of transacting business electronically.
These are
• “Originators”, who are traders or processors of
physical commodities which may be stored in any
acredited warehouses and which may be used as
collateral for obtaining finance.
• “Issuers”, who are warehouse operators responsible
for the storage of goods in their facilities, or
collateral managers who take responsibility for the
custody of goods stored in warehouses.
• “Collateral Managers/Inspectors” (“CMIs”), who may,
when so requested, certify that the goods that are
the subject of a DME CR conform to their description
on that DME CR.
• “Security Beneficiaries”, who are financial
institutions that may be prepared to provide finance
to Originators using a DME CR as collateral.
There is a further category of DME CR membership,
which does not enable access to the System for the
purpose of transacting business. This is DME CR
Associate Membership, which is designed for service
providers to the commodities industry such as
shipping companies, freight forwarders and insurance
companies. DME CR Associate Members have the benefit
of having their name associated with the DME CR
System, on the DGME website and elsewhere where it
will receive substantial exposure to the commodities
sector globally.
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2. What is the process
for becoming an Originator Member?
Applicants for Originator membership must
complete an Application Form, which can be
downloaded from the DGME website (dmexchange.webexone.com)
or obtained directly from DGME website or send to
any Applicant by email upon request. The completed
Application Form, together with the Application Fee
and Annual Membership Fee, should be submitted to
DMExchange sprl, where it will be processed,
normally within a few days. Once the application is
approved, DGME will allocate an “Administrator User
ID and Password” to the member; the member can
change this password, can nominate DME CR System
users within its own organization, and can assign
access rights (for purposes of transacting DME CR
business) to its nominated users.
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3. Must a DME CR
Member be registered or licensed as an
institution, a company or government agency to be a
participant in
DME CR System?
It is not necessary that a DME CR Member be
registered or licensed as an
institution, a company or government agency.
Warehouses that store goods that are the subject of
a DME CR must be MGME accredited. Issuing members
and CMI members must have a verified physical
presence location acceped and verified by DGME as
they play a direct role in dealing with the physical
goods that are the subject of a DME CR. However
Originator members and Security Beneficiary members
need not have a verified and accepted physical
location (their interaction with the DME CR System
being entirely electronic).
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4. How does an
Originator member transact business on the DME CR
System?
The DME CR System is a web-based platform. A DME
CR member can login to the Trade Portal and, using
its User ID and Password, access the services
provided by the DME CR System. |
| B.
THE DME CR SYSTEM ITSELF |
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5. Is the DME CR System
a trading platform or a trade finance platform?
While it is possible for the owner of goods that
are the subject of a DME CR to transfer title to
those goods via the DME CR System, the System is not
primarily designed as a trading platform. Its
primary purpose is to provide traders in physical
commodities stored worldwide with ready access to a
range of financial institutions who are prepared to
accept Dme CRs as collateral for the provision of
finance, and to provide a convenient, cost-effective
framework for the delivery of that finance.
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6. Does a DME CR
represent title to the goods that are the subject of
that DME CR?
A DME CR is a document of title in respect of the
goods described on that DME CR.
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7. What is the process
by which a DME CR is issued? Is it issued to the
Originator?
When goods an Originator deposits goods in a
warehouse controlled by a DME CR Issuing Member,
that Issuing Member may issue a DME CR for those
goods by
• Completing the necessary details on the “Issue DME
CR” screen, and
• Electronically submitting the DME CR to the
System.
At this point the DME CR is created. The Originator
can view the DME CR on its “Originator Status”
screen and print a copy (which is clearly marked as
such) for his records. DGME will print a
“master copy” of the DME CR that it will retain at
its offices, essentially as custodian on behalf of
the Originator. In the event that the DME CR is to
be transferred to another Member or used as
collateral for a finance facility from A Security
Beneficiary Member, DGME will endorse the master
copy of the DME CR that it is holding on
instructions electronically transmitted from the
Originator. At no time does the Master Copy of the
DME CR leave DGME’s custody.
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8. For which
commodities can a DME CR be issued?
There is no list of “approved commodities” as
such, for which DME CRs can be issued. Any commodity
that can be stored in a verified and accepted
warehouse worldwide, or otherwise controlled by a
DME CR Issuing Member is a candidate for DME CR
issuance.
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9. Must commodities
covered by DME CRs comply with prescribed quality or
other standards?
No. The DME CR System is designed to cover as
much of the flow of goods through its accepted and
verified worldwide locations as is
commercially feasible and hence no particular
consignment of goods is ineligible for DME CR
issuance simply because of its quality or
description.
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10. Can the DME CR
system be used to transfer title of goods to a
non-DME CR Member, or to obtain finance from a bank
that is not a DME CR Member?
No. As outlined in the answer to Q.1 above, only
DME CR members have access to the DME CR system, and
DME CRs can only be endorsed by way of transfer or
security using the System. Thus if an Originator
wishes to transfer title of goods that are the
subject of a DME CR to a non-member of the System,
he will have to arrange for the DME CR to be
cancelled and for the sale of the goods to be
effected outside the System. Similarly if he wishes
to use the goods as collateral for a loan from a
non-member financier, he will have to arrange for
the DME CR to be cancelled and for another form of
collateral documentation to be put in place.
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11. Is an Originator
guaranteed a loan using a DME CR as collateral?
No. While DME CR Security Beneficiary members are in
principle prepared to provide finance using DME CRs
as collateral, or otherwise to facilitate financing
using structures involving DME CRs, each case will
be treated by the financier on its individual merits
having regard to customer and to the commodity
covered by the DME CR, amongst other things.
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12. Can a trading or
processing company use its own warehouse facilities
for the purpose of issuing DME CRs?
Fundamental to the integrity of the DME CR
System, and its use as a trade finance platform, is
the independence of the DME CR Issuer and the owner
of the goods covered by that DME CR. Stated simply,
it is not possible for the owner of goods to issue a
DME CR in respect of those goods. Nevertheless it is
possible for a commodity trader or processor with
its own warehousing facilities to enter into an
arrangement with a collateral management company
that is a DME CR Issuing Member, for that Member to
take control of the goods and to issue a DME CR
accordingly.
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13. Is the existence or
quality of the goods described in a DME CR
guaranteed by DGME or any other party?
DGME is the administrator and regulator of the
DME CR System, and the provider of agency and
custodial services, but it does not guarantee the
existence of the goods, or the accuracy of the
description of the goods on the DME CR.
Comfort is available with regard to the existence of
the goods and the accuracy of their description on
the DME CR, depending on the type to which the DME
CR belongs:
• In the case of a “Standard DME CR” the DME CR
Issuing Member is responsible for the quantity of
the goods, as stated on the DME CR, but no party
accepts liability for the accuracy of the
description of the goods.
• In the case of an “Issuer-certified DME CR” the
DME CR Issuing Member is liable for both the
quantity and the accuracy of the description of the
goods.
• In the case of a “CMI-certified DME CR” the DME CR
Issuing Member is responsible for the quantity of
the goods, while a DME CR CMI Member is responsible
for the accuracy of their description.
This range of DME CR types is designed to provide
for a range of circumstances in which DME CRs may be
used to facilitate commercial transactions. Clearly
the credibility of the DME CR System, and the level
of comfort that it provides financiers and others,
depends on the quality of DME CR Issuing and CMI
Members. Applicants for these categories of
membership are required to satisfy DGME with regard
to their financial capacity (both in terms of
balance sheet and insurances), their expertise and
experience, and (in the case of Issuing Members) the
standard of the warehousing facilities.
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14. What are the hours
of operation of the DME CR System?
The DME CR Trade Portal System, is accessible on
a 24/7 basis. The business hours of the DME CR
Secretariat are 8.00 a.m. to 12.00 a.m., and 2.00
p.m. to 5.00 p.m. (GMT plus 3 time), Monday to
Saturday.
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15. What training and
Help Desk support does DGME offer for the DME CR
System?
DME CR members are provided with comprehensive
training in the use of the DME CR System, together
with a User manual. A 24/7 Help Desk facility is
available to deal with technical issues relating to
the system, and questions relating to DME CR
business issues can be dealt with during DME CR
Secretariat business hours (see answer to Q.15).
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16. What level of
security has been built into the DME CR System?
The DME CR System incorporates an SSL (Secure
Socket Layer) to ensure the security of information
transmitted over the world wide web, and database
encryption to ensure the integrity of all data. The
System also has been designed with a high level of
protection against unauthorized access.The System
has an audit trail facility to enable all actions of
system participants to be fully tracked.
If you have any questions regarding DME CRs that
are not fully addressed by the above, please contact
the DME CR Secretariat at:
Email: info@dmexchange.safewebshop.com
Telephone:
+255 746 723195/+ 255
787697554/
+ 243 810070289/
+ 27 768564810/ + 260 97631714/
+ 971 50 7352699
Fax (eFax):
1-419-593-6889
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Gold & Minerarls Commodity Receipt
(DME CR)
DME CR is an electronic
Gold & Minerarls Commodity Receipt
system which provides market
participants with
Gold metal, Au (Gold)
mineral Ores; Platinum, Silver and
Nickel Ores; Copper, Cobalt, Zinc, Thin,
Tantalite, Molybdenum, Antimony,
Aluminum, Lead Ores, Diamonds and
Precious Stones
commodities. DME CR system provides the
participants with a tool to hedge price
exposure, arbitrage against other
international markets or deliver or
source product from an efficient and
transparent market geographically
perfectly placed on
the earth of the African continent.
Innovative tool of obtaining Commodities
Financing:
Popularly known as the "DR Congo's
scandale geologique (geological
scandale) - as the Belgian colonisers
called the country's minerals wealth -
has attracted the world's looters to its
mining sites to cart away billions of
dollars of natual wealth witch could
pull the country out of its grinding
poverty and help end its chronic
instability if the resources were used
to create financing mecanisms for job
creation and financing possibilities to
develop the exploitation of the minerals
wealth to share returns with the local
population as it desperatly need.
DME Commodity Receipt (DME CR) is a
strategic initiative of DGME,
established to create a level playing
field for all participants in the
mining, exploitation, refining,
industrialisation and distribution of
minerals wealth.
Keeping in line with its vision to
facilitate the expansion and development
of the natural wealth industry in Africa,
DGME introduces the DME CR System, which
is an innovative tool for accessing
mineral resources financing.
DME CR is an electronic vault receipt
system that provides members with
real-time access to various forms of
minerals resources ( gold, precious
metals, minerals, Diamonds, Precious and
Semi-precious stones) stored in a DGME
approved vault. An approved vault
operator or collateral manager issues a
DME CR upon the deposit of the commodity
by a trader. DME CRs 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 bank in order to obtain
financing. A participating bank may
request the commodity, that is the
subject of the DME CR, to be tested and
verified by an approved tester.
DME CR offers financiers the opportunity
to transform credit risk into market
risk, generate new profit streams,
access new sources of finance and
attract additional trade participation.
There are several types of transaction
which can be undertaken on the DME CR
System – “issuance” and “cancellation”
of DME CRs, “endorsement by way of
transfer” of DME CRs, “pledge” of DME
CRs, “endorsement by way of security” of
DME CRs, and “Release of Security” over
DME CRs.
Issuance is the action whereby a DME CR
is created, and can only be undertaken
by a DME CR Issuer. Following issuance
of a DME CR DGME prints a DME CR
“original” which it retains in its role
as Depository. DME CR Members are able
to print copies of DME CRs to which they
are entitled access. DGME provides a
certified copy of a DME CR to those
entitled to receive it.
Cancellation is the action by which the
DME CR ceases to exist. It can only be
undertaken by the Issuer of the DME CR
that is being cancelled. If an Issuer
wishes to cancel a DME CR relating only
to some part of the subject goods he
must cancel the existing DME CR and
issue a new DME CR in respect of that
portion which is to remain the subject
of a DME CR.
A DME CR can be transferred from one
member of the system to another, by way
of a “Transfer Endorsement”. This is
effected by the transferor issuing an
instruction via the DME CR System to
DGME who endorses accordingly the
relevant printed DME CR that it is
holding. DME CR can be pledged to bank
and financiers (in certain market) as a
collateral to obtain finance.
To best protect the interests of lenders
who wish to take security over DME CRs,
security over a DME CR is created by way
of pledge and Security Endorsement.
At DMExchange sprl we strongly believe
that the introduction of this FIRST regional
Gold & Mineral Commodity Recceipt system
(DME CR) is long overdue in order to
focus attention and resources on
Africa's economic and social development.
With its pro-active business approach,
DME CR system serves as an exchange
where important local and international
players will meet to conduct their
business, while highlighting key
Africa's economic and social development
issues and defining opportunities
promoting private enterprise and
fostering high-level strategic
partnership with the world financial
markets.
DME CR membership is a global
participating by individual and entity
from anywhere in the world; you must not
be an institution, a company or
government agency to participate.
So, if you aren't yet a MEMBER, please
join us today!
On
Behalf of DME Board of Directors,
DMExchange sprl
(more...).
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