An agreement was signed between the Central Bank and the Abu Dhabi Fund Exchange regarding the strengthening of cash settlement processes in dirhams of the UAE for financial transactions executed on the Abu Dhabi Fund Exchange, as well as transactions related to margin requirements and guarantees through the Central Bank network.
According to the agreement, cash settlements for transactions, including actions, obligations, and investment funds executed on the Abu Dhabi Fund Exchange, will be conducted through the Central Bank network in strict compliance with international standards of the International Organization of Securities Commissions (IOSCO) for centralized cash and deposit services for securities.
This agreement contributes to reducing the risks of cash settlements due to the use of the Central Bank network, which enhances security and the effectiveness of trading on the Abu Dhabi Fund Exchange. This step aligns with the exchange's strategy to renew its infrastructure and provide reliable and secure financial services, ensuring a comfortable and effective trading experience for all market participants.
Management of margin settlement operations and guarantees will also be carried out through the Central Bank network, which provides a direct and effective mechanism for discounts to accelerate cash settlement processes and ensure timely financial executions without delays.
