The buy-in process is managed through the DFM trading system where the sellers can input offers daily between 3:30pm and 3:45pm UAE time and Clearing Members with negative balances can post buy-in bids from 3:15pm on T+2 until the settlement day before the last day of the Late Confirmation Period T+4.
All Clearing Members (including the selling Local Clearing Member) can participate by offering securities using their NIN investor. The maximum buy-in price can be the daily closing price plus fifteen percent, adjusted for corporate actions.
The securities settle on the same day, while cash settles on the next day (T+1 basis) due to UAE Central Bank closure times. Dubai Clear pays buy-in proceeds to the new Selling Clearing Member; any excess over the original price is paid by the Local Clearing Member, while Dubai Clear keeps gain from lower buy-in prices. If a buy-in against a Local Clearing Member fails, Dubai Clear initiates cash closeout against the Local Settlement Agent client or compensate the end buyer if the buy-in was caused by a short sell.
Fees Type | Shares | Bonds |
Market | 0.0005 or 0.5 per thousand of the value of each transaction + 5% VAT. | 0.00005 or 0.5 per ten thousand of the value of each transaction + 5% VAT. Minimum AED 20 |
Clearing | 0.0005 or 0.5 per thousand of the value of each transaction + 5% VAT. | 0.00005 or 0.5 per ten thousand of the value of each transaction + 5% VAT. Minimum AED 10 |
SCA | 0.00025 or 0.25 per thousand of the value of each transaction. | 0.000025 or 0.25 per ten thousand of the value of each transaction. Minimum AED 5 |
Orders | AED10 per Market Order + 5% VAT |
Note: All current fees are subject to VAT. The fee will be added to invoices as per the UAE Federal Law No.8 of 2017.
- Dubai Clear collects the buy-in differential sum and fees from the defaulting selling Clearing Member on Settlement Date+3
- Member may pass-on buy-in costs to its client if the default is caused by the client.