Federation of Euro-Asian Stock Exchanges
Syrian Arab Republic
78
Settlement cycle
After trading session, the transfer of ownership of deposited securities from the Seller's account to the Buyer's account is conducted via Book Entry as a result of the daily trading files submitted by the Damascus Securities Exchange to the CENTER (CCDC). Securities remain suspended in the Buyer's account until the completion of the settlement process and full payment for their value on (T+2).
The CENTER undertakes the clearing process to calculate the broker's Net to Pay or Net to Receive in accordance with all the trading contracts executed by subtracting the total value of the broker's purchases of securities for the trading day from its total sales for that trading day. The amount that the broker must pay is divided into:
• Liquidity Reserve Amount which has to be paid by the broker by 9:00AM on T+1 to the Liquidity Reserve Account at Central Bank of Syria (CBS).
• Settlement amount to be paid by the broker by 9:00AM on T+2 which represents the difference between the Net to Pay amount and the Liquidity Reserve Amount.
On (T+0) the broker is notified electronically of the amount due to be paid or received by him. If the broker does not pay the Liquidity Reserve Amount on (T+1) or the settlement amount on (T+2), then the broker is considered in breach of its obligations and the CENTER accordingly takes all the necessary measures to effect the financial settlement by notifying the Settlement Guarantee Fund.
On (T+2), Financial settlements are conducted between brokers, by clearing files which made by CENTER after trading session (T+0) and sent to the Settlement Bank, via money transfers from the brokers accounts to the Settlement Account at the Central Bank of Syria (CBS) which was adopted as the Settlement. Subsequent to money transfers credited to the Settlement Account, the CBS will transfer these amounts to the brokers’ accounts which are Net to receive and in parallel with financial settlements; the CENTER will do securities settlement and transfer the ownership of the securities concerned from the Seller's account to the Buyer's accounts