UAE DC Cash Settlement Account

On Mar. 11, UAE DC set out conditions concerning settlement bank.

  • UAE DC issued circular re Designated cash settlement account with settlement bank.
  • Conditions
  • In accordance with General rules of securities and derivatives clearing and settlement activities, rule 19.2, clearing members must comply with the following conditions.
  • Designated cash settlement account must solely be used for cash settlement of trades, and it must not function as an operational bank account for any other activities.
  • Account must not be a checking account; must not possess capability to issue cheques.
  • This is to ensure the account’s exclusive dedication to settlement transactions.
  • Crucial for cash settlement account to be active and fully operational on all designated settlement days to facilitate the successful completion of daily settlement obligations.
  • Effectiveness
  • Clearing members must complete attached form to affirm compliance of their cash settlement account with stipulated guidelines and return it to UAE DC by Apr. 15, 2024.

Regulators UAE DC
Entity Types B/D; Bank; Depo
Reference Cir DClear/2024/2, 3/11/2024
Functions Compliance; Financial; Operations; Settlement; Treasury
Countries United Arab Emirates
Products Banking; Clearing; Equity; Futures; Payments; Securities
Regions EMEA
Rule Type Final
Rule Date 3/11/2024
Effective Date 4/15/2024
Rule Id 204078
Linked to N/A
Reg. Last Update 3/11/2024
Report Section International

Last substantive update on 03/13/2024