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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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General Module (GEN) [VER43/02-19]
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GEN 2.18.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

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(1) In GEN Rule 2.2.2, operating a Clearing HouseG means operating a facility where confirmation, clearance and settlement of transactions in InvestmentsG are carried out in accordance with the non-discretionary rules of the facility, under which the PersonG operating the facility:
(a) becomes a Central CounterpartyG ("CCP"); or
(b) provides a book-entry Securities Settlement SystemG ("SSS"),
regardless of whether or not such a PersonG also operates a Central Securities DepositoryG .
(2) In (1), confirmation, clearance and settlement means the process of:
(a) establishing settlement positions, including the calculation of net positions arising from any transactions in Investments (the transactions);
(b) checking that InvestmentsG , cash or both, including margin, are available to secure the exposure arising from the transactions; and
(c) securing the timely discharge (whether by performance, compromise or otherwise) of the rights and liabilities in relation to the transactions.
(3) In (1)(a), a PersonG operates as a CCPG where it:
(a) ensures the performance of open contracts relating to InvestmentsG made on a facility for trading InvestmentsG ; and
(b) does so by interposing itself between counterparties to such contracts by becoming either the buyer to every seller, or the seller to every buyer.
(4) In (1)(b), a PersonG operates an SSS where it operates a system which enables InvestmentsG held in accounts to be transferred and settled by book entry according to a set of predetermined multilateral rules.
(5) Acting as a Central Securities DepositoryG in (1) means holding securities in uncertificated (dematerialised) form to enable book entry transfer of such securities for the purposes of clearing or settlement of transactions on its own facility and on any other similar facility, including an Alternative Trading FacilityG or a facility supervised or regulated by another Financial Services RegulatorG .
(6) To the extent that any activity under (1) constitutes Dealing In Investments as PrincipalG , Dealing in Investments as AgentG , Arranging Deals in InvestmentsG , Managing AssetsG , Arranging CustodyG or Arranging CreditG , such Financial ServicesG are taken to be incorporated within Operating a Clearing HouseG , provided such activities are carried out as an incidental and integral part of Operating a Clearing HouseG .
Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
[Amended] DFSA RM119/2013 (Made 14th July 2013). [VER33/07-13]
[Amended] DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]