Dubai Financial Market Launches Dubai Clear And Dubai CSD
The Dubai Financial Market, DFM, today officially launched its new subsidiaries, Dubai Clear and Dubai CSD.
Dubai Clear is the region’s first independent company central counterparty, CCP, for equity clearing, and Dubai CSD is the UAE’s first independent central securities depository, CSD, company.
To celebrate the official launch of the two new companies, the DFM organised a virtual bell-ringing ceremony that was broadcast through DFM’s channel on YouTube as well as other social media accounts.
The two companies are now poised to fully transform the post trade services scene in the UAE, following the support by the regulatory framework of the Securities and Commodities Authority and the implementation of Nasdaq’s Packaged CCP platform on Sunday, 15th March 2020.
This launch crowns DFM’s extensive efforts throughout the past two years to enhance market structure and post trade services in line with international best practices, which further strengthen its leadership in driving capital markets development in the UAE and the region.
Dubai Clear and Dubai CSD have received all regulatory approvals from the Securities and Commodities Authority, SCA, and Dubai’s Department of Economic Development, Dubai Economy.
Commenting on the announcement, Sultan bin Saeed Al Mansouri, Minister of Economy and SCA Chairman, said, "Launching Dubai Clear comes as part of SCA’s and DFM’s efforts to develop financial market institutions in line with the best international standards and practices. This is a significant step towards implementing a roadmap for upgrading the UAE financial markets to advanced market status."
He explained that the "SCA has already set the stage for licensing internationally-recognised CCPs by issuing Board Chairman’s Decision No. (22/R.M) of 2016 Regulating the CCP Business, which is intended to regulate the clearing of securities trades and to redistribute financial market functions that need to be shifted from vertical model to horizontal model under which separate companies will be licensed for CCP and another for depositories".
For his part, Essa Kazim, Chairman of the DFM, said, "In conjunction with DFM’s 20th anniversary and as part of our constant efforts to enhance market infrastructure and business excellence, we are delighted to launch the two new independent companies for clearing and depository, which represent a significant milestone in strengthening UAE markets’ infrastructure and competitiveness. The DFM has always been committed to achieving business excellence and ensuring full readiness for future challenges."
"The launch of Dubai Clear and Dubai CSD is in line with DFM’s strategy to meet local and global regulatory requirements by ensuring robust market infrastructure. The two companies will provide our large and diversified investor base that exceeds 844,000 with best in class solutions for clearing, settlement and depository.
"They will also ensure DFM’s readiness for the future in line with the UAE’s preparations to build upon its momentous achievements and prepare for the next 50 years," he added.
Dubai Clear and Dubai CSD are incorporated under the umbrella of the Dubai Central Clearing and Depository Holding, DCCD, a holding company for post-trade services fully owned by DFM.
The establishment of the new independent companies, which was implemented in consultation with various stakeholders, is part of a wider reorganisation of post-trade services aimed at separating them from trading activities in line with international best practices, IOSCO standards and SCA regulations.