The Central Bank of the UAE (CBUAE) and Abu Dhabi Securities Exchange (ADX) have signed an agreement to process AED cash settlements for trades in ADX-listed financial instruments, as well as margin call and collateral-related transactions, via the Central Bank Money (CBUAE) network. Under the arrangement, cash settlements for trades including shares, bonds and exchange-traded funds will be processed through the CBUAE network in line with International Organisation of Securities Commissions (IOSCO) standards for central counterparty clearing (CCP) and central securities depository (CSD) services. Margin call and margin collateral transactions for ADX-CCP will also be handled through the CBUAE network using an automated direct debit mechanism intended to speed up settlement and reduce settlement risk, and the agreement is positioned as part of ADX’s Core Platform Upgrade.
Central Bank of the UAE 2025-02-12
Central Bank of the UAE signs agreement with Abu Dhabi Securities Exchange to route AED cash settlements and margin flows through the CBUAE network
The Central Bank of the UAE and Abu Dhabi Securities Exchange have agreed to process AED cash settlements for ADX-listed financial instruments via the Central Bank Money network. This includes trades in shares, bonds, and exchange-traded funds, as well as margin call and collateral transactions, aligning with IOSCO standards for central counterparty clearing and central securities depository services. The automated direct debit mechanism aims to expedite settlement and mitigate settlement risk, supporting ADX’s Core Platform Upgrade.