Dubai CSD safe-keeps the securities listed in the market through the shouldering of several responsibilities and duties mostly centered on the close business relationship between the Dubai CSD 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 trading ground, on the other hand.
Dubai CSD operates a fully dematerialized scripless investor-level electronic securities registry system where legal ownership of listed securities is evidenced by the electronic records of Dubai CSD. Ownership is transferred by book-entry and is protected by local securities laws from the insolvency of Dubai CSD and members. Dubai CSD conducts securities settlement of trades cleared by Dubai Clear and serves as a securities depository for the local Dubai Financial Market.
Dubai CSD is a 100% subsidiary of Dubai Central Clearing and Depository Holding LLC (DCCD), while DCCD is a 100% subsidiary of Dubai Financial Market PJSC (DFM). DFM was established as a public institution with an independent legal entity by virtue of Decree 14/2000 issued by the Government of Dubai, the DFM launched its activities on 26th March 2000. On 27th December 2005, the Executive Council of Dubai decided to transform the DFM into a public shareholding company with a capital of AED 8 billion divided into 8 billion shares, and 20% of the capital, equal to 1.6 billion shares, was offered through an IPO. On 7th March 2007, the Dubai Financial Market Company was listed on the market with the trading symbol DFM.
DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by federal or local governments, local public institutions and mutual funds as well as other local or foreign DFM approved financial instruments. DFM operates according to Shari'a principles and this clearly reflects the ambitious vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President of the UAE, Prime Minister and Ruler of Dubai.