Market Link Guide – United Arab Emirates (Nasdaq Dubai)
Key features
CSD link as defined under CSDRa | Yes |
Type of link | Indirect via Deutsche Securities and Services, Dubai Branch |
a. CSD Regulation (EU) No 909/2014, Article 2(29).
CSD | Custodian | |
Name | Nasdaq Dubai Limited | Custodian: Deutsche Bank AG, acting through Deutsche Securities and Services, Dubai Branch. |
FATCA GIIN | Not available | Custodian: Y0M5J7.00000.BR.7848. |
LEI | 213800QL3V1PYPQMLU38 | Custodian: 7LTWFZYICNSX8D621K86. |
Country of incorporation | United Arab Emirates | Custodian: Germany. |
Account type | Omnibus account | Custodian: Omnibus account. |
Legal account name/holder | Deutsche Securities and Services, Dubai Branch holds an individually segregated account at the CSD for Clearstream Banking S.A. | Custodian: Clearstream Banking S.A. Nominee A/C. |
Operational arrangements
| Yes/No | Remarks | |
| Settlement free of payment | Yes | For NCBO transfers only. |
| Settlement against payment | Yes | Eligible settlement currencies can be either United States Dollar (USD) or UAE Dirham (AED), depending on the currency that the security trades in. |
| Settlement against payment in central bank money account of CBL/CBL clients | No | Against payment settlement takes place on the cash account of Deutsche Securities and Services, Dubai Branch. |
| Bridge settlement | No | |
| Shaping facility | No | |
| Partial settlement | Yes | Partial settlement is possible in forced settlement and buy-in scenarios. |
| Settlement penalty fees | Yes | Refer to the Market Profile. |
| Pre-matching | No | |
| Back-to-back processing | No | |
| Allegements | No | |
| Automatic compensation | No | |
| Registered securities | Yes | Registration takes place automatically upon settlement. |
| Multi Market Securities | Yes | Refer to the Multi-Market Securities Guide. |
| Lending and borrowing | No | |
| Proxy voting | Yes | |
| Investment Funds | Yes | |
| Liquidity Hub Connect | No | |
| Sale and purchase of rights | No | |
| Repo services | Yes | Internal. Refer to the CmaX Product Guide. |
| Market restrictions | Yes | Refer to Investment Regulation. |
| FTT | No | |
| Daily reconciliation | Yes | |
| Link eligible for use in Eurosystem credit operations | No |
Moment of entry of instructions | At the time of orders reaching Nasdaq Dubai. |
Irrevocability of instructions | Order matching. Trade cannot be cancelled once confirmed at Nasdaq Dubai. |
Finality of instructions | Securities transfer into account provided by buyer, cash credited into Nasdaq Dubai account. |
Legal arrangements
The below section is based on the legal opinions obtained by CBL that were issued on 25 May 2023 (Dubai International Financial Centre (DIFC) law). The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
No insolvency proceedings against the custodian | Confirmed re Deutsche Bank AG to the best of CBL’s knowledge. |
Custodian’s liability for negligence | On the face of it, the custody agreement contains a suitable liability clause. |
Book-entry regime with in rem rights at the custodian | A right akin to a right in rem is conferred. However, note that the terminology in DIFC Law does not precisely align with the concept of an in rem right. |
Recognition of nominee concept at the custodian | While the concept of “nominee concept” is not recognised as such, DIFC laws provides with similar legal concepts of beneficial ownership and investment entitlements. |
No right of retention for the custodian | Confirmed. |
Segregation of assets at the custodian | Confirmed. However, the CSD have a general right of retention and power of sale, as well as set-off rights. |
No right of use at the custodian | Confirmed. |
No upper-tier attachment at the custodian | Confirmed. |
Insolvency of the custodian with no impact on CBL's rights | Confirmed. |
Shortfall pro-rated among holders at the custodian | Confirmed. |
Record keeping of at least 10 years | Confirmed. |
Settlement finality in case of insolvency, at the custodian | Confirmed. |