• AMANATPress release
  • AMANATResults of BOD meeting
10:00
01 january 2014
Home > Products > Services Catalogue > Services Details

Custodian (DVP) Late Confirmation Penalty After (T+2)

Details

1- If the rejection reversal request (for Sale) or transfer request (for Buy) is executed by DFM on (T+3).

2- If the rejection reversal request (for Sale) or transfer request (for Buy) is executed by DFM on (T+4).

For information on this service, please contact:
DFM Customer Services
T:+971 4 305 5555
E: customerservice@dfm.ae  


Fees

1- AED 500 or 0.05% of trade value whichever is the higher.

2- AED 2,500 or 0.25% of trade value whichever is the higher.

Procedures

-Custodian will receive a penalty report from DFM on Monthly Basis.

-Custodian has 14 working days to pay the penalty amount in DFM IBAN AE370260000412063720929 with Emirates NBD Bank.

Required Documents
Copy of credit advise

How to Apply?
Send a copy of credit advise to Clearing & Settlement Department’s email address: clearing&settlement@dfm.ae

FAQs

Yes penalty will be applied for a minimum of AED 2500 or the total order values of each sell rejection transaction X 0.25%.
Yes penalty will be applied for a minimum of AED 500 or the total order values of each sell rejection transaction X 0.05%.
The Late Confirmation Period is from T+2 to T+4 or S+2. The Late Confirmation Period is a market infrastructure provided by the DFM to facilitate trade settlement for clients using a Local Custodian for the settlement of trades. It is a commercial decision of the Local Broker to determine whether or not a Late Confirmation Period should be offered to its client using a Local Custodian for settlement.
The market changes are summarized as follows:
  1. These enhancements impact Brokers dealing with clients which use a Local Custodian for the settlement of trades, whereby a Local Custodian can reject both securities and cash settlement of purchase and sell trades if it does not receive settlement instructions from its clients.
  2. A ‘buy-in’ mechanism to facilitate settlement of rejected sell trades is also introduced whereby Brokers which do not trade for clients who settle trades using a Local Custodian will be able to participate in a buy-in, by selling to any buy-in bids in the DFM buy-in board.
  3. A Late Confirmation period of up to T+4 will be introduced for Local Custodian clients to confirm settlement of trades. The Late Confirmation period is however subject to the broker agreement.
  4. A Local Custodian will now have full control of securities making it unnecessary to operate a dual account structure. This means that all securities may be held in one account of the Local Custodian (i.e. the Agent Trading account).