- ESMA endorsement further expands access to international capital markets, enabling Dubai Clear to attract clearing members from the European Union
- Recognition demonstrates Dubai Clear’s full compliance with Europe’s robust regulatory framework, alongside the very highest international standards
Dubai Clear, the first independent clearing company in the region and a subsidiary of the Dubai Financial Market (DFM), today announces that it has become the first onshore CCP in the Middle East to obtain the European Securities and Markets Authority (ESMA) recognition as a Tier 1 Third Country -Central Counter Party (TC CCP).
The recognition enables Dubai Clear to expand its services and activities through clearing members in the European Union (EU), at a time when the Emirate is attracting substantial interest from international investors as it rapidly implements the Capital Markets Development Strategy, which aims to accelerate the growth and diversification of its financial market and attract foreign investments and participants.
ESMA’s decision demonstrates Dubai Clear’s robust regulatory framework and markets infrastructure, which is fully aligned with the very highest international standards.
Commenting on ESMA’s recognition, Hamed Ali, CEO of DFM and Nasdaq Dubai, said: “We are very proud to accomplish this significant achievement that marks an important moment in Dubai Clear’s journey. Under the leadership and direction of the Securities and Exchange Higher Committee, Dubai’s capital markets are deepening and their appeal to international investors is fast increasing. Becoming a recognized CCP enables us to provide clearing and settlement services for all domestic and cross-border transactions further enhancing the appeal of Dubai capital markets to international investors.”
He added: “Since its inception in 2020, Dubai Clear has successfully transformed the clearing services’ landscape in the UAE by putting in place advanced financial market infrastructure and technology. This is underpinned by robust risk management and state-of-the-art, automated trade settlement processes. We are excited by the developments in Dubai capital markets and see many new opportunities ahead as we continue to make Dubai Clear the preeminent settlement partner for market participants.’
H.E. Dr. Maryam Al Suwaidi, CEO of the Securities and Commodities Authority (SCA) welcomed this achievement, which underscores the efforts to realize the strategic objectives to enhance the UAE financial markets’ competitiveness. "This recognition by a world-class regulatory body underlines the sound regulatory framework of our financial markets as well as the commitment to maintain highest levels of efficiency, risk management and compliance with the international standards, which ultimately reflects positively on the UAE capital markets’ ability to further attract foreign investments,” Dr. Al Suwaidi added.
“This achievement reflects the UAE government’s commitment towards investors and the advancement and competitiveness of our markets regionally and internationally. This recognition is also part of the continuous efforts of the SCA to further develop the UAE’s markets to the standards of their counterparts in the developed countries."
Fatma Bin Qedad, General Manager of Dubai Clear, said; “ESMA’s recognition of Dubai Clear as a Tier 1 TC CCP is further testament to our leadership in the UAE and the wider region. It enables us to provide clearing services to a broader international investor base, ultimately contributing to Dubai’s ongoing efforts to boost its capital markets. It also sends a strong signal about the sophistication of our technology, risk management framework, processes, and alignment with international best practice. We are also working closely with financial institutions to extend the range of services we provide, including endorsing new General Clearing Members (GCM). Subsequently, we have recently licensed a number of leading international and regional institutions as GCMs, as part of our efforts to offer effective clearing services for trading members.”
“During the first three quarters of 2022, AED 69.5 billion transactions have been cleared, which shows the pace of growth and development in the capital markets which we serve. This will only increase given Dubai’s ambition to deepen and broaden its capital markets and we look forward to playing our role in their evolution as the CCP clearing house of choice,” she added.
