An Islamic financing structure, and type of cost-plus financing. For example, a bank will purchase an asset and sell it to their client for a total amount made up of the cost of the asset plus a disclosed profit amount. The asset cost, plus the profit amount, is paid in deferred terms by the bank’s client over a fixed term. This Murabaha example can be applied to financial instruments, for example Murabaha Sukuk, where governments can obtain debt through an interest-free framework.

For a financing structure, where all parties are acting as principals, the major steps involved are as follows:

a) DD&Co sells Commodities to the Financier at spot (Sale Transaction)
b) Financier sells Commodities to its Customer on deferred payment terms
c) Customer sells Commodities at spot to the End Buyer (Purchase Transaction)
d) Customer will pay Financier the agreed cost-plus price at the end of the deferred payment period

We use non-ferrous metals eligible for trade on the London Metal Exchange (LME) and also Platinum and Palladium Group Metals (PGMs). All transactions are facilitated on an Over The Counter (OTC) basis and do not cross any exchange. The non-ferrous metals that we supply are always on LME warrant and located, in every instance, in LME approved, bonded warehouses. PGMs are typically stored in secure vaults located in Switzerland and North America and are in the form of sponge or ingot.

We screen all the metals that we facilitate for a number of reasons, in particular to ensure that there are no metals sourced from a sanctioned country.

Also known as a reverse murabaha. An Islamic finance practice used to provide working capital in compliance with Sharia. In a tawarruq transaction, a buyer (borrower) buys an asset (typically a commodity such as platinum or copper) on credit from a lender on a deferred payment basis and then immediately resells the asset on the spot market for cash to a third party. The borrower therefore has the funds that they need; the borrower has created an obligation to pay the lender the original purchase price (which will include the spot price plus a profit element); and the lender has made a profit on the transaction.

We are a physical merchant trader – we do not act as a broker in any of our asset facilitation transactions. We purchase and sell physical, allocated metal in our own name, as principal, meaning that all such metals are identifiable and specifically determined in terms of location, quality and quantity at the point of supply and available for physical delivery if requested. We have full legal title to the metal we supply at the point of sale to our customer.

We are an Associate Trade Member of the London Metal Exchange (LME) and an Affiliate of the London Platinum and Palladium Market (LPPM). Our market memberships support our ability to provide physical commodity facilitation to our customers. Our relationships with various market members, including banks and other trade counterparties, enable us to access the physical market environment.

Yes, we can facilitate FX / forex / foreign exchange transactions and are regularly involved in facilitating these structures for our global network of banking clients in a wide variety of freely convertible currencies.

Yes, we can facilitate PRS transactions and are regularly involved in facilitating these structures for our global network of banking clients.

ETHOS AFP™ is hosted within 2 geographically dispersed Tier 3 data centres (DCs) in the UK – in Birmingham and London.

No. ETHOS AFP™ is hosted within a UK Private Cloud.

Yes. All ETHOS AFP™ data is replicated in real near-time to a different data centre. So, in the case of a catastrophic failure in either the primary DC itself or the infrastructure connecting to it, ETHOS AFP™ can be re-provisioned in the DR site.

ETHOS AFP™ is available to clients in 3 main formats:

API users – both SOAP and REST

Browser users – web based interface

Phone or email – contact our ETHOS Services team directly on ddgi@ddcap.co.uk.

Yes. Our ETHOS Services team will work with you to configure the system to your requirements and provide guidance on using our API connectivity if required.

Access to the ETHOS AFP™ itself is free of charge. We have a range of options with regard to transactional fees and our ETHOS Development team will be happy to elaborate on those with you.

Yes we do have an Access and Controls policy. This is subject to ongoing review and a formal update at least annually.

Yes, we have ISRS 4400 certification – to achieve this certification, transactions are reviewed in accordance with the International Standard on Related Services 4400 by a major global financial services sector advisory firm on an annual basis.

ETHOS AFP™ is also subject to an annual pen testing and has, for several years now, been awarded Cyber Essentials Plus certification.

Yes we do have BCP. This is subject to ongoing review and a formal update at least annually.

We are a physical merchant trader acting in a principal capacity that falls outside the scope of regulated financial activities. We do, however, hold relevant market memberships, including Associate Trade Membership of the London Metal Exchange and Affiliate Membership of the London Platinum and Palladium Market.

Yes we do have a Risk Register. This is subject to ongoing review by our corporate governance and market risk committees as well as a formal update at least annually.

Yes we do have a Data Retention Policy. This is subject to ongoing review by our corporate governance and market risk committees as well as a formal update at least annually.