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Euroclear Bank to become first foreign depository to settle DIFX trades

PUBLISHED ON 29-Nov-2006
Euroclear Bank to become first foreign depository to settle DIFX trades

Dubai and Brussels, November 29, 2006 - Euroclear Bank and the Dubai International Financial Exchange (DIFX) jointly announced today an agreement whereby DIFX members will be able to settle cross-border DIFX securities transactions with Euroclear Bank clients.

This agreement 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; settlement of transactions between Euroclear Bank clients can take place in any of the 36 settlement currencies currently offered by Euroclear Bank.

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, said: "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, said: "The exchange is actively. building links with regional as well as international institutions. This process will benefit issuers and wholesale and retail investors alike."

Roger Harrold, Head of Domestic Custody Services at Deutsche Bank, added: "Deutsche 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."

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