There is a department in theDubaistock market called CDS which has the responsibility of maintaining registers of all securities in the DFM list since there are specific rules and regulations to invest in the Dubai Stock Market. There are set operations on a daily basis which include clearance, settlement which is a system called CSS and it is an automated system which clears and settles daily transactions.
The system saves the buy and sell of spot orders as well including all the others and both systems the CSS and CSD are electronically connected and entwined with each other. The system passes the securities immediately after the transaction is complete to the registered security holder’s account. Thus, the investors have easy access to all the required information. All the information including the information of issuers listed in the register is stored in the Clearance and Settlement system. This has made the process efficient, safe, secure and credible (Share Wadi, 2009).
A number of Exchange Activities can be monitored through the CSS and CSD systems:
• monitor activity (watch securities in Market Watch, or the market with Tape
• determine difference in traded positions with respect to the last trade (monitor profit & loss),
• Alerts can be activated with respect to particular symbols.
The Trading is divided into four distinct segments, each of which has its own clearing and settlement procedure. These are: T+3(which has been converted in to T+2), Provisionally Listed Companies, Spot (T+1), Transactions and Future Contracts.
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