Murex, DDCAP platform integration for Islamic finance

By Robin Amlot

Murex is partnering with DDCAP to streamline booking and processing of Sharia compliant transactions by financial institutions worldwide. Murex’s MX.3 for Islamic Finance automates post-trade business processes and benefits from a preconfigured solution based on Sharia stipulated standards. The packaged solution offers and delivers a depth and breadth of Sharia 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, 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.

The platform integration is mutually beneficial to DDCAP and Murex, but also aims to bring a competitive edge to clients by extending product coverage and reducing operational timelines whilst adhering to Sharia-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 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.

Murex’s market-leading MX.3 platform has been fully integrated with DDCAP’s ETHOS AFP™, an award-winning, bespoke, real-time and post-trade services provider enabling continuous coverage and allowing clients worldwide to purchase from a diverse asset inventory, including commodities, via a secure, web-based portal. The platform is Sharia-compliant and is regularly reviewed by and supported with a Fatwa issued by DDCAP’s own Sharia Supervisory Board. The platform has also been endorsed by other internationally recognised Sharia scholars.