• AGLTYBOD meeting
  • AMCUAEFund performance for the month of July 2020
Home > Products > Services Catalogue > Services Details
Rate Service

Increasing Trading Limit

Service ID
5.3.6

Details

Members are not allowed to exceed the maximum trading limit (total of their B/Gs issued to Dubai Clear in one trading session.

If a member exceeds this limit, they will not be allowed to purchase through Dubai Clear except in the following cases:

  1. Increasing the trading maximum limit.
  2. Executing sales that will lead to decreasing the net payable dues.


For more information on this service, please contact:
Dubai Clear
T: +971 4 305 5555
E: clearing&settlement@dubaiclear.ae


Fees
Free of charge.

Procedures
  • Presenting Dubai Clear with a new Guarantee including the increased amount.

OR

  • The bank that issued the Guarantee sends officially to Dubai Clear informing them that they are responsible to raise the B/G limit and commits to pay the dues resulting from this increase if the member fails to do so.

OR

  • The member deposits an amount either in cash or through a Cheque in the deposit account concerning increasing the trading limit with the settlement bank. They are to send a copy of the statement of deposit, to which a letter from the member requesting increasing the trading limit is enclosed.

OR

  • The member sends an official letter to Dubai Clear requesting increasing the Guarantee limit, guaranteed by the amount due to them in (T+1).

OR

  • The member sends Dubai Clear an official letter requesting freezing securities concerning the member firm itself.


Required Documents
  • Fill the form "Collateral Management" and submit the request through member eServices.

How to Apply?
Online through Dubai Clear eServices

FAQs

The Clearing Member’s (CM's) Trading Member (TM) can increase his Trading Limit through the following options:

  • Submit a new bank guarantee to the market including the amount of increase.
  • The bank issuing the guarantee sends an official letter to Dubai Clear stating that they bear the responsibility for the increase in the bank guarantee limit, provided they undertake to pay entitlements due as a result of default by the CM’s Trading Member.
  • Deposit an amount of money either cash or cheque in Dubai Clear's Account with: 
  1. Emirates NBD, or
  2. Standard Chartered Bank.

You then send a copy of the credit advice along with an official letter from the CM’s Trading Member requesting to increase the trading limit by email to clearing&settlement@dubaiclear.ae


  • Submit an official letter to the Dubai Clear requesting to increase the Trading Limit by using the settlement due payments which are to be collected in the next settlement date (T+1). 
  • Submit an official letter to the Dubai Clear requesting to freeze securities owned by the CM’s Trading Member or one of its owners. In this case, the Trading Limit will be increased by 50% of the securities current value in the Market. In case the CM’s Trading Member exceeded the original bank guarantee value, shares shall unfreeze on (T+2) only but if the CM’s Trading Member wishes to unfreeze the shares on (T+1), he should deposit in the Dubai Clear account the amount exceeding the original bank guarantee value.