Murex partners with DDCAP Group to facilitate transactions for Islamic financial market participants
Murex has partnered and integrated its platform with DDCAP Group (DDCAP) to streamline booking and processing of Shariah compliant transactions by financial institutions worldwide.
MX.3 for Islamic Finance automates post-trade business processes and benefits from a preconfigured solution based on Shariah stipulated standards. The packaged solution offers and delivers a depth and breadth of Shariah compliant, functional coverage to clients and is supported by a team of Islamic finance specialists operating from a large presence in Asia and the Middle East.
Clients of DDCAP and Murex operate within all of the largest markets for Islamic finance, extending from Southeast Asian countries such as Malaysia and Brunei; Gulf Cooperation Council countries in the wider Middle East, including Bahrain, Qatar, Kuwait, Oman, Saudi Arabia and the United Arab Emirates; and the UK, Africa, Europe and North America.
Previously, clients booked and processed commodity Murabaha deals via two distinct platforms, one run by Murex and the other by DDCAP. That process is now fully integrated, eliminating double-booking and shifting trade initiation to MX.3. Working with two systems exposed clients to higher operational costs and the potential for manual error. The flexible integrated automation achieved between DDCAP and Murex reduces cost of ownership for clients, whilst the packaged interface allows Murex Shariah-compliant clients to book MX.3 Murabaha contracts with direct access to DDCAP trade and post trade environments including automated inventory screening and allocation, issuance of trade contracts and all supporting documentation.
The platform integration is mutually beneficial to DDCAP and Murex, but also brings a competitive edge to clients by extending product coverage and reducing operational timelines whilst adhering to Shariah-compliant protocols that uphold the integrity of the Murabaha process.
“As the Islamic finance market continually grows, the DDCAP-Murex platform integration and partnership should dramatically simplify and optimise booking and processing for existing clients and provide an efficient solution for new customers in existing and new markets,” says Murex Co-founder and Managing Partner Philippe Helou.
DDCAP sees huge upside for its clients as a result of the integration, according to its Managing Director, Stella Cox CBE. She notes that the platform integration offers a series of benefits, including straight-through processing, connectivity efficiencies and cost reduction, with the capability to differentiate itself by offering a range of new products to complement existing. The integration will optimise running cost and strike the reconciliation burden, with trade booking and documentation synchronised in real-time between DDCAP ETHOS Asset Facilitation Platform and MX.3 platform. It will also reduce manual intervention to exceptional cases.
“DDCAP is very excited by this partnership with Murex,” says Cox. “As Market leaders we saw an opportunity to leverage each other’s strengths in this instance, and we expect significant benefits for clients as well as for both organizations in our current user landscape and beyond.”