The Dubai Financial Market announced yesterday the official launch of the Dubai Clearing Company and the Dubai Central Depository Company, which are two independent companies for post-trading services.
A statement issued yesterday stated that "Dubai Clearing" is the first independent company in the field of central clearing services for securities at the regional level, while "Dubai Central Depository" is the first independent company for central depository services in the UAE.
The Dubai Clearing Company and the Dubai Central Depository Company are affiliated with Dubai Clearing and Depository Central Holding Company, which is responsible for the post-trading services wholly owned by the Dubai Financial Market.
Market Upgrade
The Minister of Economy, Chairman of the Board of Directors of the Securities and Commodities Authority, Engineer Sultan bin Saeed Al Mansoori, said, “The inauguration of the Dubai Clearing Company comes in light of the efforts of the Authority and the Dubai Financial Market to develop financial market institutions in accordance with the best international standards and practices, and is an important step on the road to implementing a map The road to upgrading financial markets to advanced markets. ”
He explained that «the authority paved the way for the licensing of clearing firms of international recognition, by issuing the decision of the Chairman of the Authority’s Board of Directors 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 re Distributing the tasks executed within the financial market, so that the market moves from the vertical model to the horizontal model in organizing activities, and an independent company will undertake clearing activities in securities, and another for filing.
Ready
In turn, the Chairman of the Dubai Financial Market Company, Issa Kazim, said: “The launch of (Dubai Clearing House) and (Dubai Central Depository) is in line with the market’s firm commitment to keeping pace with global and local requirements, and ensuring that it has a sophisticated financial market structure, as the two new companies will provide the market base. The huge variety of investors that exceeds 844 thousand investors, an integrated and superior set of services and solutions related to the activities of clearing, settlement and deposit of securities ».
He stressed that 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 accompanies the state’s preparations to devote its successes and excellence in all fields during the next 50 years.
IOSCO Standards
For his part, the CEO of the Securities and Commodities Authority, Dr. Obaid Al Zaabi, said that “the launch of the Dubai Clearing Company supports the implementation of the Authority’s roadmap for developing the financial markets in the country and upgrading them to advanced markets, as well as achieving full compliance with the standards of the International Organization of Securities Authorities (IOSCO)” .
He added that «the presence of an independent clearing company will facilitate the development of a market for liquidity and derivative management tools in the financial markets in the UAE».
Maryam Fikry: Safer utilization of available liquidity
"The launch of Dubai Clearing Company, the central clearing unit in the Dubai Financial Market, represents an important shift in this area, as it provides better use of the guarantees offered for investment in shares by the clearing members, including Maryam Fekry, CEO of Dubai Clearing and Depository Central Holding Company," said. It contributes to optimizing the use of available liquidity in a more effective, safe and secure manner, in accordance with international best practices, as the use of these guarantees is linked to market-related risks. ”
She added that the launch of "Dubai Clearing House" is also gaining great importance for the DFM strategy in the field of derivatives, as it is in line with the regulatory rules for central clearing activities issued by the Securities and Commodities Authority, in cooperation with the financial markets in the country, which the Dubai Financial Market played a pivotal role during Prepare it.
She explained that "Dubai Central Depository Company will contribute in its turn in providing the best safe custody solutions for the securities belonging to investors and is held by the Central Depository Company", pointing out that the company operates as an independent legal entity, which provides additional protection for investors, in addition to those primarily available from Through applicable local laws related to securities. The company will also provide many other services, including issuing the investor number and distributing cash dividends.