Dubai - Mubasher: Dubai Financial Market (DFM) on Sunday announced the launch of the General Clearing Member (GCM) service, which allows approved local banks to provide brokerage firms with clearing and settlement service.
The approved banks can carry out the clearing and settlement services after the completion of several technical and regulatory arrangements, in addition to tuning the business model to accommodate the new service, according to a bourse statement.
“With this step, brokerage firms can now outsource the clearing and settlement functions to a GCM and focus their operations on the trading membership function only,” the DFM added.
The DFM accredited Emirates NBD Bank to be the first GCM service provider, after the bank received the Securities and Commodities Authority’s (SCA) approval to the bank to become GCM in local market, the Dubai-based bourse revealed.
“This step underlines DFM’s efforts to further develop its business model in line with international best practices of clearing, settlement and depository,” said Maryam Fekri, DFM’s chief operating officer and head of clearing, settlement and depository division.
