The Dubai Financial Market announced today, Tuesday, the official launch of Dubai Clearing Company and Dubai Depository Company as two independent post-trading services.
Dubai Clearing Company is the first independent company in the field of central counterparty securities (CCP) at the regional level, while Dubai Central Depository Company is the first independent company for central securities depository services in the United Arab Emirates.
The two companies rely on the world-class regulatory frameworks issued by the Securities and Commodities Authority, in addition to the advanced technical infrastructure that was enabled by the successful transformation to the Packaged CCP integrated platform from Nasdaq International starting from Sunday, March 15, 2020, which places them in an ideal position to make a move Quality in the field of post-trading services in the Emirates.
This achievement culminates in intensive efforts made over the past two years to develop the market structure and post-trading services in accordance with international best practices, in order to establish its leading position in leading the development efforts in the financial markets sector locally and regionally, knowing that the launch of Dubai Clearing Company and Dubai Depository Company comes after the completion of all licenses. The official approvals required by the Securities and Commodities Authority and the Department of Economic Development in Dubai (Dubai Economic).
Towards upgrading to developed markets
The Minister of Economy and Chairman of the Board of Directors of the Securities and Commodities Authority, Engineer Sultan bin Saeed Al Mansoori, said: “The launch of the Dubai Clearing Company comes in light of the efforts of the Authority and the Dubai Financial Market to develop financial market institutions according to the best international standards and practices. It is also an important step on the road to implementing an upgrade road map Financial markets to developed markets. "
He explained that "the authority has paved the way for the licensing of clearing firms with international recognition by issuing the authority’s chairman’s decision No. (22 / R) for the year 2016 regarding organizing the business of the central clearing company with the aim of regulating clearing operations in the stock market and redistributing the tasks implemented within the market. Financial, so that the market moves from the head model to the horizontal model in the organization of activities; an independent company will undertake clearing activities in securities and another for filing. "
Ready for the future
"In conjunction with the twentieth anniversary of the establishment of the Dubai Financial Market and in the context of our continuous efforts to develop the market structure and raise its institutional distinction to new heights, we are pleased today to accomplish one of the most important new entrepreneurial initiatives for the market by launching the two independent companies for clearing and central deposit As a detailed developmental step that enhances the structure and competitiveness of financial markets in the UAE, the market has been keen since its establishment in the year 2000 to achieve institutional excellence, improve performance, anticipate challenges and meet the requirements of development and growth.
He added: "The launch of" Dubai Clearing "and" Dubai Central Depository "is in line with the firm market commitment to keep pace with global and local requirements and ensure the possession of a sophisticated financial market structure, as the two new companies will provide a huge and diverse market base of investors that exceed 844 thousand investors with an integrated and superior set of services. And solutions related to the activity of clearing, settling and depositing securities. The completion of the process of structural development of the market and the reorganization of post-trading services enhances its readiness for the future and keeps pace with the state’s preparations to devote its remarkable successes and excellence in all areas during the next fifty years. On this occasion, we extend our sincere thanks to the Dubai Securities and Commodities Authority, Dubai Economic and all the dealers and consulting firms for their great cooperation in achieving this achievement. "