Qatar Exchange enhances DvP to support securities lending
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Qatar Exchange enhances DvP to support securities lending 16 April 2013Qatar Reporter: Jenna Jones
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Throughout 2013 Qatar Exchange plans to enhance its delivery versus payment (DvP) mechanism to support securities lending and borrowing.
Qatar Exchange has also reported that since its implementation on 11 April 2011, its DvP mechanism has been performing successfully and “that in no instance was a securities buy-in or a cash close-out execution required”.
Upon implementation in 2011, Qatar Exchange facilitated its DvP mechanism by introducing trade confirmation procedures for investors under custody and offering a buy in system and a seller compensation scheme.
In 2012, Qatar Exchange improved the system. Investors were awarded enhanced protection for their securities during the dividends season by ensuring the applicability of the DvP process throughout the corporate actions period.
Commenting on the success of DvP, Rashid Al Mansoori, CEO of Qatar Exchange, said: “Being the first exchange in the region to implement such a sophisticated mechanism shows our commitment and dedication to the overall development of the capital markets in Qatar. It has also strengthened the confidence of the international investment community that Qatar is a safe market to invest in.”
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