Saturday 28 May 2011

gulfnews : Nasdaq Dubai set to delay adoption of DvP

The Nasdaq Dubai plans to delay proposed market enhancements until July subject to regulatory approval, the exchange said in a statement on its website on Thursday.

The exchange had planned to adopt a so-called delivery-versus-payment system "in the near future" for its listed shares, the company said in an April newsletter. Known as DvP, the system is a securities industry procedure in which payment for a security must be made when the security is delivered. Usually, the payment is made to a bank, which in turn pays for the security.

Brokerages and custodians have until tomorrow to switch to DvP, the UAE stock exchanges said last month. The Emirates Securities and Commodities Authority, the nation's regulator, said on April 11 DvP would be introduced at the bourses yesterday.

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