Refining Au - Pt - Ag
DME CR FAQ
DME CR Business Process
Gold & Precious Metals|
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.
• “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
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.
It is not necessary that a DME CR Member be
registered or licensed as an
4. How does an
Originator member transact business on the DME CR
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.
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.
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.
7. What is the process
by which a DME CR is issued? Is it issued to the
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
• Completing the necessary details on the “Issue DME
CR” screen, and
• Electronically submitting the DME CR to the
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.
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
9. Must commodities
covered by DME CRs comply with prescribed quality or
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
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.
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.
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
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
• 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
• 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.
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
15. What training and
Help Desk support does DGME offer for the DME CR
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).
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:
+255 746 723195/+ 255
+ 243 810070289/
+ 27 768564810/ + 260 97631714/
+ 971 50 7352699
Fax (eFax): 1-419-593-6889