Summary: Bourse to adopt delivery versus payment
rule; Salam International to be replaced by Qatar Nat'l Cement; Qatar, UAE in review for upgrade to emerging status
He said the SCA, on the other hand, issued a number of new regulations and amended others as required by the rating prerequisites, adding that the SCA amended the regulations for brokers and corporate governance and issued new regulations for securities custody and Delivery versus Payment
Abu Dhabi The Emirates Securities and Commodities Authority (SCA) said yesterday the UAE's stock markets will start operating the delivery versus payment
(DVP) service from April 28.
The emerging multilateral netting service will include real time risk management and information systems and will allow the most advanced delivery versus payment
("DVP") settlement methods wherever national payment systems make this possible.
Abu Dhabi Securities Exchange (ADX) announced that it is continuing the process of enhancing Delivery Versus Payment
(DVP) model, which ADX launched in May of 2011, through applying Buyer Cash Compensation (BCC) settlement procedure
In 2011, to comply with the MSCI criteria, the UAE and Qatar implemented the delivery versus payment
(DVP) models on their bourses.
Regulators need to tackle issues like introducing new instruments besides the pure longing of stocks of listed companies, improve mechanisms like delivery versus payment
(DVP), auxiliary tools like security lending and borrowing, licensing new financial services like investment management and regulate existing practices like rating agencies, auditing firms and research and financial analysis services," he said.
In a statement released on its website, the MSCI said investors welcomed the implementation of new delivery versus payment
(DvP) settlement models in the UAE and Qatar.
On the UAE, Gotke said, "With more and more foreign investors looking to buy and sell in the UAE, clearly the newly implemented delivery versus payment
(DVP) system, introduced as part of the MSCI criteria, has now been more fully tested.
Following the implementation of new delivery versus payment
(DVP) models on the Qatar Exchange, Dubai Financial Market and Abu Dhabi Securities Exchange in May 2011, the index provider had postponed a decision in June this year to December to get more time to study whether both countries merit promotion.