The features of the buy-in mechanism are as follows:

The buy-in process is managed via the DFM trading system. The buy-in board will be available for input of offers by new sellers daily between 3.30pm and 3.45pm UAE time. Clearing Member with negative available balances can opt to post buy-in bids to the buy-in board from 3:15pm on T+2 onward until the settlement day before the last settlement day of the Late Confirmation Period.
All Clearing Members (including the selling Local Clearing Member) will be permitted to participate in the buy-in and offer their own securities or their client securities in the Buy-in by quoting the relevant NIN investor number. The client whose securities are being bought-in cannot offer his securities to the buy-in. Other clients may choose to offer their securities in the buy-in through their Local Clearing Member.
The maximum buy in price can be the daily closing price plus fifteen percent (duly adjusted for any corporate actions).
Partial completion of buy-ins will be allowed.
The matching algorithm is best price offered, volume and time priority until the quantity is obtained.
The securities will settle on the same day of the buy-in, whilst the cash will settle on the next day (i.e.T+1 basis). This is mainly due to the fact that the Central Bank of the UAE is closed by this time and the cash can only move on the next day.
Dubai Clear will pay the buy-in cash proceeds to the new Selling Clearing Member. If the buy-in price is greater than the original traded price, the Local Clearing Member must pay the difference. However, if the buy-in price is lower, then the Dubai Clear will retain the gains.

Where the buy-in against the Local Clearing Member fails, a cash closeout against the Local Settlement Agent client will be invoked by Dubai Clear.

Frequently Asked Questions