DFM launches ‘Omnibus Accounts’ to improve market access

By Shilpa Annie Joseph, Official Reporter
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DFM introduces Omnibus Accounts
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Dubai Financial Market (DFM) has launched the Omnibus Accounts structure for holding securities as a gateway to accessing investment opportunities for eligible investors for the benefit of more than one beneficiary owner.

“Regulated entities, that are eligible, can open a unified account to hold and trade securities on behalf of numerous beneficial owners through a single investor number (NIN),” according to the statement.

Meanwhile, Dubai Central Securities Depository (Dubai CSD), a subsidiary of DFM, has issued the Omnibus Account rules and it has also launched a registration process for interested eligible investors.

Hamed Ali Image
Hamed Ali
CEO
DFM & Nasdaq Dubai

“The introduction of Omnibus Accounts is a key milestone in our endeavor to implement Dubai’s strategy to develop its capital markets. It enhances international investors’ access to our diversified investment opportunities. The availability of Omnibus Accounts also responds to the market accessibility and market quality requirements in the MSCI Market Accessibility Criteria, FTSE Quality of Markets Matrix, and other international index providers.”

This announcement follows the publishing of Omnibus Accounts regulations by the Securities and Commodities Authority (SCA), which permits Central Securities Depositories (CSDs) to introduce their own respective rules and procedures for Omnibus Accounts.

Commenting on this new development, Ms. Haneen Al Hammadi, General Manager of Dubai CSD, stated that, “The Omnibus Accounts’ structure is a leap forward for certain market participants, particularly asset management companies, as it enables them to achieve operational and cost efficiencies.”

“The introduction of Omnibus Accounts will allow for greater participation from investors into local markets. Investors can view an Omnibus Accounts structure as an economical way to structure custody assets as it delivers operating and cost efficiencies via reduced onboarding requirements and maintenance fees,” commented Ms. Rocio Echague, Head of Securities Services, MENA (excluding Saudi) & UAE at HSBC.

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