Asset servicing – United Arab Emirates (Nasdaq Dubai)


Income collection

The Nasdaq Dubai market follows standard rules with respect to income collection. Nasdaq Dubai acts as the official source of information and determines entitlement based upon holdings at ex-date. Payment date and ex-date are announced by issuers on a “per event” basis. Nasdaq Dubai seeks to guarantee same-day payment of proceeds collected from the issuers' agents although issuers generally credit local custodians with proceeds via cheque or bank transfer on Pay Date.

Service offeredRemarks
Notification to clients

Standard Asset Servicing reporting via Swift MT56x, Xact Web Portal and Xact File Transfer.

See Section 8 “Asset servicing” of the Client Handbook.

See Connectivity manuals on the Clearstream website.

Payment of proceeds

Even though bonds are not currently listed on Nasdaq Dubai, there is a procedure in place to ensure that any interest on bonds will be paid out by the CSD within 24 hours of receipt from the issuer company.

Proceeds are calculated based on the Cum entitlement position recorded at the close of business on the record date and paid to the client's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received.

Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value.

The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR.

The custodian has a maximum 24 hour turnaround time to send information and to make payments to CBL. The response deadline is 1 day prior to the market deadline.

For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Client Handbook.

Corporate actions

The main source of corporate action information is Nasdaq Dubai itself.

Entitlement date for equities is record date.

Payment date is not fixed as the companies listed on Nasdaq Dubai are from locations across the globe. A payment period concept applies instead.

Service offeredRemarks
Notification to clients

Clearstream Banking advises clients of their entitlement to participate in Dubai corporate actions.

The custodian has a maximum 24 hour turnaround time to send information to CBL.

Instruction to CBL

Clients may instruct CBL to carry out options foreseen in the terms and conditions of the underlying type of security.

In addition, CBL informs clients on an “as and if received” basis of unscheduled securities events occurring on account holdings, such as rights offers, reinvestment options, exchange offers, purchase offers, mergers etc. The response deadline is at least 1 day prior to the market deadline.

Proxy voting procedures

Proxy voting services are available in CBL for this market.

Voting entitlement is determined by position at record date and split voting is allowed.

For details about the proxy voting services offered by CBL, please refer to the CBL Client Handbook and, for the market specific practices, please refer to the Market Profile – United Arab Emirates (Nasdaq Dubai).