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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Conduct of Business Module (COB) [VER33/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

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(1 version)
Jul 14 2013 onwards

COB 9.6.6 Guidance

Whole Section PDF

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.

To view past versions of this module in PDF format, please visit the Archive.

1. An ATS OperatorG should, when developing its controls and procedures with regard to short selling and position management, have regard to:

a. its own settlement cycle, so that any short selling activities on its facilities do not result in any delay or prevent effective settlement within such cycle; and
b. orderly functioning of its facilities, so that any long or short position concentration on InvestmentsG that remain unsettled does not interrupt such functioning;

2. Examples of circumstances that would not be treated as short selling in Rule 6.7.1(3) include where the seller:

a. has entered into an unconditional contract to purchase the relevant SecuritiesG but has not received their delivery at the time of the sale;
b. has title to other securities which are convertible or exchangeable for the SecuritiesG to which the sale contract relates;
c. has exercised an option to acquire the SecuritiesG to which the sale contract relates;
d. has rights or warrants to subscribe and receive SecuritiesG to which the sale contract relates; and
e. is making a sale of SecuritiesG that trades on a “when issued” basis and has entered into a binding contract to purchase such SecuritiesG , subject only to the condition of issuance of the relevant SecuritiesG .
[Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]