Murex announced a partnership and platform integration with DDCAP Group to streamline booking and processing of Sharia-compliant transactions by financial institutions worldwide. DDCAP is a provider of asset facilitation and trade execution services. Murex provides enterprise-wide, cross-asset financial technology solutions for capital markets and MX.3 is Murex’s cross-function platform that supports trading, treasury, risk and post-trade operations.
MX.3 for Islamic Finance automates post-trade business processes and benefits from a preconfigured solution based on Sharia stipulated standards. 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, as well as 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 Sharia-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.
“As the Islamic finance market continually grows, the DDCAP-Murex platform integration and partnership should dramatically simplify and optimize booking and processing for existing clients and provide an efficient solution for new customers in existing and new markets,” said Murex co-founder and managing partner Philippe Helou, in a statement.
Stella Cox, a managing director at DDCAP, said in a statement 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 optimize running cost and strike the reconciliation burden, with trade booking and documentation synchronized in real-time between DDCAP ETHOS Asset Facilitation Platform and MX.3 platform. It will also reduce manual intervention to exceptional cases.