Dubai Central Clearing & Depository Holding (DCCD), a subsidiary of Dubai Financial Market (DFM), today announced that both Dubai Clear (LLC) and Dubai CSD (LLC) have successfully registered a robust performance during the first year of operations since both companies’ official launch on 28 April 2020, driving business excellence and advancement of post-trade services in Dubai and the UAE.

As the first local equities CCP in the UAE and the region, Dubai Clear has guaranteed trade settlements amounting to AED 15.6 billion during its first year of operations. Dubai Clear reduced counterparty risk to Clearing Members as well as enhanced risk management of trade settlement through the creation of a Settlement Default Fund based on international best practices to handle any potential defaults by Clearing Members.

Currently, Dubai Clear has 30 members and holds collateral worth AED 2.05 billion.

On the other hand, Dubai CSD, the first and only Securities and Commodities Authority (SCA) licensed central depository in the UAE to date, has successfully performed transactions worth AED 75.8 billion including; securities settlements, Corporation Actions and Securities related transactions in 2020. During the same year, it has also distributed AED 20.63 billion of cash dividends for listed companies on DFM and Nasdaq Dubai. Payments were distributed to over 365,450 investors via iVESTOR Card and bank transfers.

Commenting on the two companies’ performance during the first operational year, Maryam Fekri, CEO of the Dubai Central Clearing & Depository Holding (DCCD) said: “We are pleased to see Dubai Clear and Dubai CSD achieving many of their objectives, providing strong impetus to our efforts to strengthen infrastructure and competitiveness of post-trade services in Dubai and the UAE. The CCP clearing house has enabled the introduction of margining in line with international standards to guarantee trades settlements thereby allowing members’ effective use of their collaterals, which has benefited the market participants in these challenging time. Moreover, as a CCP clearing house Dubai Clear has enabled DFM to launch its equity futures.”

“Meanwhile, as a separate legal entity Dubai CSD has played an integral role in custody protection of investors’ securities, further enhancing investor protection. In addition to maintaining the various efficient services it provides to investors such as Investor Numbers (NINs) issuance and cash dividend services, Dubai CSD also introduced an in-kind creation and redemption process for the seamless creation and redemption of ETFs for the settlement of trades. The company is in the process of introducing the Beneficial Ownership and Omnibus structure to further improve market access and complement the identification of Ultimate Beneficial Ownership,” Maryam Fekri added.

It is noteworthy that the two leading post-trade service providers are supported by favorable regulatory framework that provides highest levels of investors’ rights protection and flexible use of securities portfolios. The two companies are also employing world-class technology such as Nasdaq’s Packaged CCP platform.