ID :
174896
Tue, 04/12/2011 - 13:50
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Shortlink :
https://oananews.org//node/174896
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Emirates Securities Markets to implement DVP from April 28
Abu Dhabi, April 12, 2011 (WAM) - The Emirates Securities and commodities Authority (SCA) has announced that stock markets in the UAE will start operating the Delivery Versus Payment (DVP) service from Sunday, April 28, 2011. The move, which will place the UAE among the first in the region to implement such a mechanism, reflects the commitment of the SCA, the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to developing the local securities market infrastructure and to adopting the best international practices.
Both the ADX and DFM, in collaboration with the SCA, have completed all the necessary preparations by testing the technological systems and putting in place all the operational procedures for the successful implementation of the service. A number of workshops had been held to highlight and test the new product and to outline the regulation and procedures of custodians and brokers regarding the new service.
In a statement, Abdullah Al-Turifi, SCA Chief Executive Officer, said implementation of the new mechanism is part of the effort to adopt best international practices in line with the recommendations of the International Organisation of Securities Commissions (IOSCO) and in order to meet the requirements for the elevation of UAE markets to the emerging international markets status, according to the Morgan Stanley International Capital indices, a move which would attract more foreign investment to the UAE markets.
Al-Turifi pointed out that the local markets and brokers have taken the necessary steps to convert to the new settlement mechanisms, having met the necessary technical requirements for the implementation of the mechanisms, adding that the SCA had issued last year licenses to a number of companies and banks to provide custodian services, enough to meet all the components of operating the DVP.
The DVP is one of the best practices being advocated by the International Organisation of Securities Commission (IOSCO), as the latter, through a recommendation paper it has issued on Security Settlement Regulation, urged all member bodies to adopt the DVP, a mechanism which is very effective in minimising risk and currently being implemented on all the elite international bourses of the world, including the New York Stock Exchange, the London Stock Exchange and the Hong Kong Stock Exchange.
It is highly expected that the DVP would help minimise the risks emanating from the delivery and receipt of securities as both the ownership transfer and payment of securities cost will be done simultaneously. - Emirates News Agency, WAM
Both the ADX and DFM, in collaboration with the SCA, have completed all the necessary preparations by testing the technological systems and putting in place all the operational procedures for the successful implementation of the service. A number of workshops had been held to highlight and test the new product and to outline the regulation and procedures of custodians and brokers regarding the new service.
In a statement, Abdullah Al-Turifi, SCA Chief Executive Officer, said implementation of the new mechanism is part of the effort to adopt best international practices in line with the recommendations of the International Organisation of Securities Commissions (IOSCO) and in order to meet the requirements for the elevation of UAE markets to the emerging international markets status, according to the Morgan Stanley International Capital indices, a move which would attract more foreign investment to the UAE markets.
Al-Turifi pointed out that the local markets and brokers have taken the necessary steps to convert to the new settlement mechanisms, having met the necessary technical requirements for the implementation of the mechanisms, adding that the SCA had issued last year licenses to a number of companies and banks to provide custodian services, enough to meet all the components of operating the DVP.
The DVP is one of the best practices being advocated by the International Organisation of Securities Commission (IOSCO), as the latter, through a recommendation paper it has issued on Security Settlement Regulation, urged all member bodies to adopt the DVP, a mechanism which is very effective in minimising risk and currently being implemented on all the elite international bourses of the world, including the New York Stock Exchange, the London Stock Exchange and the Hong Kong Stock Exchange.
It is highly expected that the DVP would help minimise the risks emanating from the delivery and receipt of securities as both the ownership transfer and payment of securities cost will be done simultaneously. - Emirates News Agency, WAM
