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Buy-In Commissions

Service ID
8.2.3
Title
Buy-In Commissions
Details

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

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.

Procedures
  1. Dubai Clear collects the buy-in differential sum and fees from the defaulting selling Clearing Member on Settlement Date+3
  2. Member may pass-on buy-in costs to its client if the default is caused by the client.
Required Documents
NA
How to Apply
NA
Services Catalogue