Edaa Company announced the postponement of reducing the settlement period from T+3 to T+2, until the beginning of next March, in coordination with the Qatar Financial Markets Authority, and at the request of the custodians.
In this context, Sheikh Saif bin Abdullah Al Thani, CEO of Edaa, confirmed the readiness of the company’s infrastructure to implement procedures for reducing the settlement period, indicating that the announcement comes out of concern for the public interest of the Qatari financial market and its participants.
He explained that this deadline was granted so that market participants, financial intermediaries and custodians, could update their systems and notify their clients of the new procedures. In preparation for its implementation in compliance with the legislation of the Qatar Financial Markets Authority, as well as in order to strengthen and develop the Qatari financial market, attract investments in securities, as well as speed up the turnover of the investment process for the general benefit of the market and investors.
This strategic initiative is based on reducing the settlement period for trading operations carried out on the Qatar Stock Exchange from three working days following the day of the buying and selling transaction (T+3), to only two working days following the day of the buying and selling transaction (T+2), which represents a qualitative shift in Speeding up trading activity on the Qatar Stock Exchange and transferring ownership of securities in line with best practices in the field of securities and cash settlements for trading operations in financial markets around the world, and enhancing the position of the State of Qatar in global financial markets.
Edaa Company is considered the depository licensed by the Qatar Financial Markets Authority and specialized in providing clearing, settlement and custody services for securities and other financial instruments traded on the Qatar Stock Exchange, and providing all related services.
It is noteworthy that Edaa Company, which aims to provide an infrastructure for financial instruments within the Qatari market, the regional market and outside the region as well, had announced earlier this year the initiative to reduce the settlement period for transactions executed on the Qatar Stock Exchange from T+3 to T. +2, which is one of the initiatives aimed at developing the working mechanisms of the Qatari financial market, accelerating trading activity, and attracting investments in securities.