Introduction to the Clearing, Settlement and Depository Division
The Clearing, Settlement and Depository Division, CSD, is considered the major division and most important foundation of Dubai Financial Market. Through it an atmosphere of confidence, security and stability is provided to the investor, through the confidentiality of information pertaining to the investor and his property. This is done by the exercise of strict control by the said division over the broker's activities with regard to the investor's securities. This control is one of the functions of this division. It leads in turn to protection of the investor's rights through the simultaneous creation of a transparent and efficient market.
The division safe-keeps the securities listed in the market through shouldering of several responsibilities and duties mostly centered on the close business relationship between the division and the listed companies, on the one hand, and through the administration, safe custody , registration, depositing, and transfer of ownership of securities either immediately as a result of sale and purchase transactions in the market, or transfers outside the dealing room operations, on the other. This is in addition to the settlement of the prices of securities traded in the market by settlement and liquidation of the net amount payable and collection from licensed brokers through the accredited Settlement Bank.
The organizational structure of the Clearing, Settlement and Depository Division
This division consists of four main departments , namely the Depository , the Clearing and Settlement; Client Services, and Call Center Departments, and aims at facilitating the traders dealings with the division. Each department is entrusted with specified functions, noting that certain functions are jointly performed by more than one department.
Strategic Policy of the Clearing, Settlement and Depository Division
To support the functions of Dubai Financial Market through the meticulous and effective performance of the division’s activities and through the creation of a completely secure and effective control and complete confidentiality of the dealings of the market parties, preservation of their private information and non-disclosure except after proper ascertainment of identification. This in turn helps the gaining of confidence of dealers and stimulating the investment in securities at Dubai Financial Market.
Objectives of the Clearing, Settlement and Depository Division
- To provide an atmosphere of security and stability for investors in their interaction with Dubai Financial Market through the confidentiality preserved on their information and the non-acceptance of any unofficial or unreliable orders when executing any action.
- To reduce the opportunities for fraud in the investors securities through the exercise of strict control over the brokers transactions with the Clearing Authority in favor of the investor.
- To ensure receipt and delivery of accurate information of the investor, after ascertaining his identity.
- To efficiently perform its duties by ensuring the validity of applications and supporting documents and punctually completing the transactions.
- To ensure the completion of accurate and correct daily settlement by ascertaining the receipt of all amounts due from the brokers and payment of all dues.
Purposes of the Clearing, Settlement and Depository Division
- To ensure the accurate and correct completion of the financial settlement in accordance with the executive regulations of the market and the Securities and Commodities Authority.
- To observe the accuracy and honesty in conducting all kinds of securities' transfer transactions of the investor inconformity with market rules and regulations.
- To transfer most of the division's transactions to the electronic environment and clear the computer-data base.
- To execute all kinds of corporate actions on shareholders according to the register of listed companies in the market.
- To efficiently and confidentially manage and keep securities to protect the rights of all parties and provide them with optimum services.