Market Link Guide - Dubai (Nasdaq Dubai)

18.10.2021

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/NoRemarks
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 customers

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 10 February 2021 (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.