Standard Chartered says it has been appointed as the clearing bank for the Dubai International Financial Exchange (DIFX), the stock exchange located inside the Dubai International Financial Centre (DIFC).
The DIFX plans to begin trading securities on 26 September 2005, using the US dollar. It chose Standard Chartered in preference to rival bids from a number of other leading international banks.
“This is a landmark deal for Standard Chartered,” says Ray Ferguson, Chief Executive, Standard Chartered, United Arab Emirates. “We will continue to partner the DIFX to meet its requirements for a successful launch of the exchange and its subsequent successful development. his appointment reinforces Standard Chartered’s reputation as a bank leading the way in helping to create a world class financial centre in Dubai. We believe the DIFX has the potential to become the leading stock exchange between Western Europe and East Asia. We mobilised various departments across the Bank’s global network to form the best deal team possible, leveraging Standard Chartered’s global expertise in cash management.”
As the DIFX’s clearing bank, Standard Chartered will process all cash receipts and payments for DIFX-appointed settlement banks under a tri-partite agreement between the DIFX, the clearing bank and each settlement bank.
Steffen Schubert, Chief Executive of the DIFX, says he selected Standard Chartered “for its global expertise in cash management, and its vast experience in working within financial exchanges around the world. Standard Chartered will help us create settlement processes of the highest international standards, in which member banks of the DIFX can have complete confidence.”
Standard Chartered was one of the first banks to receive a commercial banking licence to operate inside the DIFC, when the DIFC opened for business in September 2004.
Nasser Alshaali, Chief Operating Officer of the DIFX, says the appointment of Standard Chartered as clearing bank is a “key step” in the development of the DIFX as an international financial exchange. “It is also another step forward for the DIFC as a location where leading banks are increasingly active,” he says.
Standrad Chartered has introduced liquidity management solutions in the UAE, Oman, Qatar and Bahrain.
Standard Chartered also offers clearing bank services in India and China and is a settlement bank for the Singapore Exchange. It was invited to become the only foreign bank for clearing and settlement by the Kuala Lumpur Stock Exchange in 1999.