FEAS Yearbook FEAS Yearbook 2017 | Page 48

DvP Model

As per Principle 4 "Credit Risk" of IOSCO recommendations, item 3.4.9 the CDS follows a DvP Model 2 to settle securities on a gross basis and funds on a net basis. Settlement is final and irrevocable once cash and securities have transferred on T+2 according Delivery Versus Payment (DVP).

Clearing of Trades

- The CDS electronically calculates the trading values per each broker intraday on T+0 since the trading system and the CDS system both have a tightly coupled connection (pre verification of inventory).

- Net positions of brokers' financial obligations per each fund are automatically calculated at the CDS system, and showed available on clearing reports at CDS.

- Brokers and settlements banks who are appointed by brokers to settle their obligations have an online access on the CDS to track the net position to be settled at the Real Time Gross Settlement System (RTGS) on T+2. The RTGS is managed by the Palestine Monetary Authority (PMA) and named as BURAQ.

- Based on the clearing reports, a settlement file (called Concurrent Batch) is uploaded on the BURAQ by the CDS, net positions in this file are exactly matching net positions in the clearing reports held at the CDS, as the CDS already is an indirect member in BURAQ at PMA as per the agreement that was signed with PMA for the purpose of processing the cash settlement through the PMA.

Capital Market Information

Palestine Exchange

Mr. Ahmad Aweidah

CEO of Palestine Exchange (PEX)

Key Highlights of the year 2016 2017

Federation of Euro-Asian Stock Exchanges

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Our membership of FEAS is something that we are really proud of. The unique feature of FEAS is the very diverse opposition of its membership and the closeness and great sense of cooperation that exists between the members.

- Mr. Ahmad Aweidah -