Dubai CSD licenced as central securities depository service provider in UAE

DUBAI- The Dubai Financial Market Company officially received its regulatory licence from the Securities and Commodities Authority, SCA, for its new depository company, the Dubai Central Securities Depository, as the first independent company for central securities depository services in the UAE under the SCA’s Board of Directors’ Decision No. (19/R.M) of 2018 concerning the regulation of the Central Depository Activity.

The establishment of the Dubai CSD is part of a comprehensive reorganisation plan for DFM’s post-trade services that further strengthens its leading position in driving the development of the capital markets sector in the UAE and the region. Dubai CSD is currently in the process of preparing its operational framework to enable it to start operations shortly. Once Dubai CSD begins operating, investors will be able to utilise all depository-related services, including the application for Investor Numbers, NINs, customer services, and the payment of cash dividends through the Dubai CSD.

The Dubai CSD is incorporated under the umbrella of the Dubai Central Clearing and Depository Holding, DCCD, a holding company for post-trade services. The DCCD is also the holding company of Dubai Clear, the Central Counterparty company, which is due to commence operations later this year upon receiving regulatory approval from the SCA.

"SCA’s licence of Dubai CSD is the first step in the broader plan to revamp the post-trade services, in line with the international best practices of capital markets and post-trade services. We believe that the reorganisation of the DFM Company’s business units creates a solid foundation to achieve the objectives of our 2021 strategy aiming to strengthen the DFM’s active role, in line with Dubai’s status as a centre of excellence and a dynamic capital markets hub," said Essa Kazim, Chairman of DFM Company. The Dubai Financial Market Company announced the new organisational structure of post-trade services in March 2019, in conjunction with its 19th anniversary, which separates the post-trade services from the exchange services of the listing and trading of securities.