Dubai Financial Market (DFM) has launched a new settlement mechanism, ‘Delivery versus Payment’ (DvP), Mondovisione reports. The licensed brokers and custodians of DFM can now execute trades based on the new settlement mechanism. The mechanism will enable investors, who deals with the custodians, to reject, sell or buy trades in case it fails to match the order. DvP limits the risk related to transactions and ensures the transfer of ownership of securities from the seller to the buyer concurrently with the transfer of the transactions’ value from the buyer to the seller.

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