Jun 05 2011 |
more articles from
|
NASDAQ Dubai - Circular No 10/11- Proposed Enhancements to Clearing and Settlement
Further to Circular Numbers 4/11 and 7/11, NASDAQ Dubai proposes to introduce enhancements to its Clearing and Settlement model.NASDAQ Dubai proposes to move to a T+3 settlement cycle from its current T+2 cycle. Subject to regulatory approval, the enhancements are expected to become effective from early July 2011.
The enhancements will allow more time for international investors in different time zones to settle their transactions on NASDAQ Dubai 's market, and will minimize rejections of trade obligations by Settlement Agents due to non confirmation of trades by their clients.
- Custodians, in their capacity as Settlement Agents, may reject trades for settlement if settlement instructions are not received from the client by close of business on T+2. If a trade is rejected, the payment and securities obligations for the rejected trade will revert to the Member. This gives Custodians control over the securities they hold in their client accounts.
- A late confirmation period of two market days from T+3 (i.e. T+5, equivalent to two settlement cycles) will be introduced. Subject to agreement by the Member, a rejected trade may be accepted for settlement by the Custodian, if settlement instructions are received by the Custodian withinT+5. This provides a grace period for Custodian clients to provide settlement instructions. The late confirmation period will begin on T+3 and end at 1:00 pm on T+5.
- Rejection accounts will be introduced for Members trading on behalf of clients using a Custodian for settlement.
- If a Custodian rejects settlement of a buy trade, securities will be transferred to the Client buy rejection account under the control of the Member which placed the buy order.
- If a Custodian rejects settlement of a sell trade, securities settlement obligations will be transferred to the Member sell rejection account under the control of the Member which placed the sell order.
- There are 5 ways to resolve a sell rejection if the selling Member does not have sufficient balance in their Sell Rejection account:
- Custodians will not be able to reject partial orders. Members must ensure each client order is entered into and executed separately.
-
NASDAQ Dubai
may levy penalties on the client (NIN holder) for late settlement confirmations and collect the penalty through the Custodian.
NASDAQ Dubai
will publish its penalty rates.
-
NASDAQ Dubai
will provide new functionality for any Member to sell securities to the buy-in board. This will enable matching buy-in bids posted by a selling Clearing Member with a negative balance in the client rejection account.
With respect to trades made by Members for clients without a Custodian (including trades by retail investors via direct trading accounts), only the enhancements of T+3 settlement cycle and the new functionality related to the buy-in mechanism will apply.
NASDAQ Dubai
participants will be informed of further details of the proposed operational model in due course via detailed operational procedures.
-Ends-
The information in this document is subject to change. This document is not a substitute for the relevant
NASDAQ Dubai
Business Rules and in the case of inconsistency; the
NASDAQ Dubai
Business Rules shall prevail.
Disclaimer:
The information in this document is subject to change. This document is not a substitute for the relevant
NASDAQ Dubai
Business Rules and in the case of inconsistency; the
NASDAQ Dubai
Business Rules shall prevail. Note: Unless otherwise provided, capitalised terms shall have definitions assigned to such terms in the
NASDAQ Dubai
Business Rules.
For further information please contact:
NASDAQ Dubai
Market Operations
Tel: +971 4 305 5471
Email: clearing@nasdaqdubai.com
© Press Release 2011
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment