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Euroclear To Settle Trades On DIFX

by Carla Johnson, Investors

08 December 2006

Euroclear Bank, provider of a leading settlement system for international securities transactions, is to become the first foreign depository to settle trades on the Dubai International Financial Exchange.

The agreement with the DIFX signifies the first Euroclear Bank relationship with an exchange and central securities depository (CSD) in the Middle East.

In early 2007, Euroclear Bank will work with Deutsche Bank, its selected agent in Dubai, to provide access to the DIFX CSD.

All Euroclear-eligible trades on the DIFX will be settled in US dollars, and the settlement of transactions between Euroclear Bank clients can take place in any of the 36 settlement currencies currently offered by Euroclear Bank, according to the DIFX.

Martine Dinne, Chief Executive Officer of Euroclear Bank, commented: “Euroclear Bank is delighted to be the first foreign CSD to provide access to the entire DIFX market infrastructure. In a region where international participation is likely to grow, we aim to ease the operational path for foreign investors seeking to invest in the Gulf Cooperation Council states and other capital markets in the region. In parallel, we look forward to reinforcing our commitment to clients in the Middle East by providing international investor access to the DIFX.”

Per E. Larsson, Chief Executive of the DIFX, noted: “Investors who want to buy or sell shares listed on the DIFX can now choose to settle the trades efficiently through Euroclear Bank. This agreement is based on growing demand from investors internationally and locally to trade DIFX shares.”

Hamed Ali, Executive Officer of the DIFX, added that is continuing to actively building links with regional as well as international institutions.

"This process will benefit issuers and wholesale and retail investors alike," he observed.

Roger Harrold, Head of Domestic Custody Services at Deutsche Bank, said that the bank is leading the effort to establish the DIFX as a central trading environment for the Middle East.

"We are pleased that together with Euroclear we are now creating seamless settlement capabilities for institutional clients trading in securities listed on the DIFX," he stated.

Euroclear provides securities services to major financial institutions located in more than 80 countries.

In addition to its role as the leading International Central Securities Depositary (ICSD), Euroclear also acts as the Central Securities Depository (CSD) for Dutch, French, Irish and UK securities.

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