DFM to abolish T+2 system

The Dubai Financial Market (DFM) will implement a new settlement system based on delivery of shares against payment, as opposed to the current T+2 system, by which payment can be made up to two days after the transaction.

The DFM also wants to create a system for trading rights shares that have been allocated, but not delivered to those entitled to these shares. Approval has been sought from the Securities and Commodities Authority (SCA), DFM Executive Chairman Essa Abdulfattah Kazim, told Emirates Business.

"The trading of rights shares, which means a capital increase that allows shareholders to expand their shareholding at relatively lower prices, will give shareholders the opportunity to preserve their rights, especially those who are not subscribing to the capital increase," Kazim said.