Settlement services - Dubai (NASDAQ Dubai)

20.04.2017

Pre-matching service

Pre-matching service is not offered on the NASDAQ Dubai market, however customers may select the Immediate release flag as shown in the tables below:

Service offeredMethod employedStart (local time)
All securities
Immediate Release Flag availableAutomatedOn receipt of instructions

Connectivity mediumInstruction format
CreationOnlineTick the box to enable the “Immediate Release” option.
Creation via Xact and Xact File TransferField :22F::STCO/CEDE/IREL

Procedures for domestic counterparties

Domestic counterparties that want to deliver or receive securities free of or against payment to/from CBL’s account in Deutsche Bank Amsterdam must always enclose in their instructions the following information:

NASDAQ Dubai Securities operated via DFM (Equities, DRs, ETFs)

FieldValue
Deutsche Bank Amsterdam BICDEUTNL2A
Deutsche Bank Dubai BICDEUTAEAD
National Investor Number (NIN)DB00043804
Clearstream NIN NameDeutsche Custody N.V. CBL NIN
Clearstream Banking Trading Account number at the exchange79073334
Five-digit account number of counterparty at CBL  For example, 12345
CBL safekeeping a/c number with Deutsche Bank20004384004

NASDAQ Dubai (Fixed Income Instruments)

FieldValue
Deutsche Bank Amsterdam BICDEUTNL2A
Deutsche Securities and Services (Dubai) Business Partner Identification
number (BPID) at NASDAQ Dubai
DBSS0200001
Deutsche Securities and Services (Dubai) number at NASDAQ DubaiDB00043804
Clearstream Banking Account number with Deutsche Bank Amsterdam10143
Five-digit account number of counterparty at CBLFor example, 12345

For up-to-date information, please refer to CSD Member Account Details on the NASDAQ Dubai website.

Allowed countervalue difference

A maximum difference in countervalue of USD 25 or AED 100 (for AED-denominated securities) is allowed for transactions with domestic counterparties. If there is a discrepancy, the cash amount of the delivering party will prevail. Customers should note that there is no official market tolerance level in place at the DFM and that the levels quoted above are based on Clearstream's service offering via its subcustodian.

Specific settlement rules / settlement restrictions

In order to access NASDAQ Dubai securities via the DFM, Clearstream's subcustodian, Deutsche Bank Amsterdam, maintains a main securities account with the CSD. This securities account is covered by a NIN in the DFM system and is opened in the name of “Deutsche Custody NV” (DCNV). Responsibility for activities related to the NIN is also assigned to a local custodian - Deutsche Securities and Services (DSS) Dubai.

The Deutsche Bank Amsterdam/DCNV securities account has the following sub-accounts - a custody account and an agent account:

  1. The custody account is only accessible to the custodian and the CSD itself (that is, not the broker). The account is used for the safekeeping of securities. Clearstream customers are required to advise their brokers of the NIN number when placing a trade with a broker.
  2. The agent account. Purchased securities are received into this account before the sub-custodian can transfer them to the custody account. Likewise, securities to be sold are transferred onto this account from the custody account in order for the transaction to take place. Clearstream customers should bear in mind that securities are not available for trading while they are held in this account.
    Market practice is for this account to be the default account for holding securities positions.
    However, post implementation of DVP in the market, securities are maintained in the agent account only as the custodian retains the right to reject any trade which is not valid or unmatched or notified by Clearstream as invalid. The Custodian responsible for the NIN is required to grant a specific broker access to the NIN; certain custodians grant this access on the condition that the broker enters into an SLA with them to govern the brokers access, liabilities and responsibilities.
    Brokers will need to know the NIN under which an investor's securities are held in order to execute the transaction at NASDAQ Dubai/DFM.

Customers seeking to transfer NASDAQ Dubai securities into Clearstream are required to transfer securities via a stock exchange transaction using the Clearstream NIN provided in the Creation Link Guide (NASDAQ Dubai).

Matching - Fixed income instruments

Instructions for OTC trades that are sent by NASDAQ Dubai CSD participants are held in the NASDAQ Dubai system before being released for settlement. Instructions are matched by the NASDAQ Dubai CSD system while in this “held” status and are released on settlement date (SD) from the beginning of the business day. Matched delivery instructions are only released for settlement if securities are available in the delivering party’s account at the NASDAQ Dubai CSD. Matched receipt instructions are released automatically on the morning of SD.

Matching is binding but a transaction can still be cancelled (see below) on SD if it remains in “held” status, due to the fact that the securities are unavailable for delivery. Once released for settlement the transaction is irrevocable.

Matching - Equities, DRs and ETFs

For NASDAQ Dubai securities that operate via the DFM's trading, clearing, settlement and custody platform From Trade Date+1 (T+1), Clearstream's local custodian performs matching of settlement instructions sent by Clearstream customers with reports received from the Dubai Financial Market and local brokers. Unmatched trades will be reported by the sub-custodian to the DFM, the local broker and the custodian's cash settlement bank. Matching is binding.

Cancellations

There is no possibility to cancel or delay settlement for trades executed on the DFM's trading platform. Consequently, for such trades, settlement is mandatory on T+2.

Cash payments

The securities market settles against USD and AED. Customers are required to provision their USD account through the standard channel of JPMorgan Chase Bank, New York. Customers are required to provision their AED account through the standard channel of Standard Chartered Bank, Dubai, UAE. Customers are strongly recommended to provision their cash account within the deadlines set for securities instructions.

Back-to-back processing

No back-to-back service is currently offered on the NASDAQ Dubai market.

Management of failed instructions

Settlement of trades executed for NASDAQ Dubai securities on the Dubai Financial market (DFM) is mandatory. Trades failing due to insufficient cash provisioning at the level of the broker will result in the broker's bank guarantees being invoked.

New issues settlement

Only a limited number of issues are currently eligible on the NASDAQ Dubai. All domestic new issues will be accepted on the NASDAQ Dubai link, pending review.