"The proposed DVP
model aims to enhance market infrastructure and to ensure its alignment with international standards and best practices.
The below key features remain: Settlement of securities on T+2, pre-validation of sell orders will be maintained, the existing securities and cash settlement timings will be changed to accommodate handling of rejected trades, the enhancements to the DVP
model applies only to settlement of trades by Local Custodians clients and do not apply to clients settling trades through direct trading accounts.
As we can notice in Figure 6(a), RDPD exhibits over 2.5 times higher throughput than SP and DVP
when the generation size is 16 and the block size is 1024 bytes.
The proportions of manual interventions observed in DVP
and COM were compared using odds ratios (OR).
The new BCC procedure-a part of the DVP
model- which took effect on the 5th of May, means that a buying investor will be paid cash compensation in the event of securities being unavailable for delivery to the buying investor on settlement date.
Emad Mostaque, a London-based strategist at Religare Capital Markets, said the UAE is more likely to be upgraded this time as trading volumes have picked up, although he noted that data is still a bit scarce on the key issue of DvP
While this possibility certainly exists, we are not aware of this actually having taken place since the implementation of the DVP
delivery-versus-payment settlement systems, or DvP
, introduced in 2011 more thoroughly.
It said the delay was partly to allow market players more time to assess new delivery-versus-payment (DvP
) settlement systems, which some of the bourses introduced in 2011.
Influential index compiler MSCI will announce in December whether it will upgrade the UAE to emerging market status, having delayed its decision from June to allow it to get more feedback on bourses' new delivery versus payment (DvP
) settlement systems, the international standard.
Dubai's DFM General Index has climbed 2.8 per cent and Abu Dhabi's ADX General Index advanced 5.9 per cent after the UAE bourses started the DVP
system on May 29.