The service will begin to be offered on stocks next May
HSBC is the first international provider of general clearing member service in the Dubai Financial Market
The Dubai Financial Market has announced the adoption of HSBC Bank as the first international provider of general clearing member service in the market, which enables the bank to provide clearing and settlement services to various dealers at the global level, as well as to trading members in the market.
A statement stated that HSBC's provision of the service of the general clearing member of the Dubai Financial Market comes within the framework of a wide-ranging cooperation program between the two sides, with the aim of strengthening the market's structure and strengthening its links with global and institutional investors.
The bank is expected to start providing the service on listed shares next May, at a time when it is also looking to provide clearing services for future share contracts at a later time.
improvements series
Hamed Ali, CEO of Dubai Financial Market and Nasdaq Dubai, said: “We are pleased to welcome HSBC, as an international provider of general clearing member service, as an important step in a series of improvements aimed at enhancing market access and implementing a growth strategy in the Dubai market. financial.
He added that the bank’s regional and global presence and its expertise in the field of capital markets will collectively contribute to accelerating the implementation of our growth plans, pointing out that the launch of the new service coincides with the increasing interest of regional and international investors in enhancing direct access to the Dubai Financial Market, and thus it meets their aspirations in this regard. and their growing interest in strengthening their activities in the market.
financial partner
In turn, the CEO of HSBC Bank UAE and Head of the International Business Department at the bank, Abdel Fattah Sharaf, said that the bank’s obtaining the first international general clearing membership in the Dubai Financial Market is largely in line with its ambition to be the preferred financial partner for customers. at the global level.
He stressed that the new service will enable dealers across the bank's global network to invest in the available opportunities in the market, especially in light of the strong and increasing demand by global investors for securities issued by governments and companies in the region.
Quantum leap
In the same context, the CEO of Dubai Clearing and Central Depository Holding Company, Maryam Fikri, said that the Dubai Financial Market has succeeded, through the "Dubai Clearing Company", in developing the infrastructure and organizational structure for post-trading services, in accordance with international best practices.
He added, "This qualitative shift in post-trading services in the UAE allowed financial institutions to provide many advanced services in the market," noting that "Dubai Clearing" completed during the year 2021 clearing operations for deals exceeding 72 billion dirhams through the central clearing.
It is noteworthy that brokerage firms operating in the Dubai Financial Market can obtain both trading and clearing membership, or trading membership only, knowing that the latter allows them to effectively and flexibly manage bank guarantees by benefiting from the service of the general clearing member in the market, to complete clearing and settlement operations.
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