Emirates NBD granted clearing role

The Securities and Commodities Authority (SCA) said it had granted approval to Emirates NBD as the first local institution permitted to conduct clearing activities in local financial markets.

The regulator also plans to separate clearing operations from settlement practices on the local exchanges as the body moves to enhance the UAE equity market’s position in MSCI, the index compiler.

Emirates NBD will be the country’s first "general clearing member," enabling it to perform clearing and settlement services for brokerage firms and their clients "after concluding a bilateral agreement to settle the accounts of the brokerage firm’s clients or the accounts of the firm."

"This agreement would regulate the business relation between both parties and the rights and liabilities of each party, as well as how to distribute the commission on them," the regulator said in a statement on its website yesterday.

SCA described the move as part of its efforts to position UAE financial markets for an upgrade to developed market status, it said. It said it hoped the licensing of Emirates NBD would encourage brokerage firms to convert their status to trading members from their current status of trading and clearing members.

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