The Dubai Finance Market (DFM) Company launched two new business entities that will transform post-trade services in the UAE and provide more protection to the investors.
The Dubai Clear, and Dubai CSD (central securities depository) were unveiled shortly after the live-streaming of the stock exchange’s first virtual bell-ringing ceremony.
They are the first fully licensed entities by the Securities and Commodities Authority (SCA) of the UAE securities markets and are part of ongoing efforts to improve the structure of the market and delivery of services after trading, said a statement issued by DFM on its website today.
The DFM also serves as a clearing house and depository for the stocks and bonds that are listed and traded on the emirate’s stock exchange and Dubai Clear will now be a clearing house for equities, while CSD will provide central securities depository services, the statement added.
According to Essa Kazim, Chairman of DFM, the two new independent firms represent an important milestone, “aiming to strengthen UAE markets’ infrastructure and competitiveness.”
Obaid Al Zaabi, CEO of SCA also spoke on the occasion and said that launch supports their aim to develop the UAE’s financial markets and to achieve full compliance with the International Organization of Securities (IOSCO) standards.
“The national independent clearing company will facilitate the development of liquidity management and the derivatives products market in the UAE,” Al Zaabi said.
Dubai Clear will provide the central counterparty (CCP) function, making it the first fully operational independent CCP company for equities in the region.
Sultan bin Saeed Al Mansoori, Minister of Economy and chairman of SCA, said the launch is a significant step towards implementing a roadmap for upgrading the UAE financial markets to advanced market status.
