The study recommended that trades be settled promptly (no later than three business days after the trade date or T+3), in same-day funds, and according to the principle of delivery versus payment
The adoption of standardized settlement periods and a delivery versus payment
The proposal is presented in a white paper - CNS Settlement as Delivery Versus Payment
in DTC (CNS for Value) - issued to the industry today.
Bourses in Qatar and UAE have announced plans to implement the global standard Delivery Versus Payment
(DvP) settlement system, seeking upgrades from index compiler MSCI which could attract index funds.
He added that DFM's efforts and initiatives to further enhance its infrastructure in line with international best practices such as Delivery versus Payment
(DvP), Buyer Cash Compensation and Market Making, have been decisive in the upgrade of the UAE to Emerging Market status by international companies such as MSCI and S&P Dow Jones.
The two systems will be connected using Model 1 Delivery Versus Payment
(DVP), said Mike Hawkins, Exec.
Insist on Delivery versus Payment
and Third-Party Safekeeping.
Market participants recognized that the Qatari authorities and the Qatar Exchange have made significant progress in enhancing the operational efficiency of the Delivery Versus Payment
( DVP ) model.
With more and more foreign investors looking to buy and sell in the UAE, clearly the newly implemented delivery versus payment
(DVP) system, introduced as part of the MSCI criteria, has now been more fully tested," he said.
The two Gulf states, rejected last year for an upgrade, have moved to address key issues cited in MSCI's 2010 review by introducing a Delivery versus Payment
(DvP) settlement system.