Dubai Financial Market (DFM) is authorized by local securities law to operate a central securities depository for all securities listed on the DFM. DFM Depository operates a fully dematerialized scripless investor-level electronic securities registry system where legal ownership of listed securities is evidenced by the electronic records of DFM Depository. Ownership is transferred by book-entry and is protected by local securities laws from the insolvency of DFM Depository and DFM Depository Participants. DFM Depository also conducts securities settlement of trades cleared by DFM Clearing and serves the local market. There are no cross-border links. DFM Depository uses NASDAQ OMX’s Equator AS400 system for its depository functions.
DFM Depository operates on a National Investor Number (NIN) system where each investor must have a NIN. An investor can only have one NIN with DFM Depository irrespective of the NIN type but may have more than one depository account under a NIN.
There are two types of NINs:
- Direct NIN
- Custodian NIN
There are three ways for an investor to apply for a NIN:
- DFM Depository directly at the client services counters located at the DFM premises; or
- Trading Member Participants who will facilitate the application for an NIN for the Trading Member’s clients;
- Custodian Participants if the investor is a client of the Custodian Participant.
For Direct NINs, instructions for operation of accounts come from the Direct NIN holder. For Custodian NINs, instructions for operation of accounts must come only from the Custodian Participant.