The QCSD will be responsible for carrying out the clearing, settlement & depository of securities.All transactions traded shall be due for settlement (money and securities) on the trading day (T+3). Financial settlement shall be carried out through clearance between cash clearing members (Members and Custodians).Physical settlement (of securities) shall be made through crediting and debiting from investors’ accounts registered in the QCSD system. Each member shall open a settlement account in any of the State’s licensed banks and shall be called the member’s or custodian’s settlement account. Multilateral cash settlement operation in terms of transactions and payments shall be carried out between members and custodians through the settlement account of QCSD at the settlement bank (Qatar Central Bank).
Members and custodians shall submit the following two types of bank guarantees dedicated to ensuring the settlement operations and determining the settlement cap for each member:
• Initial bank guarantee of twenty million Qatari Riyals.
• Reserve bank guarantee of five million Qatari Riyals.
The member may submit a supplemental bank guarantee at his choice to increase the settlement cap. The values of such bank guarantees shall be calculated in the settlement cap for each member by 100%.The QCSD shall set the settlement cap for each member, pursuant to the guarantees submitted by the member, thereby determining the maximum payment amount (difference between value of buy transactions and value of sell transactions) which may be incurred by the member during one settlement day.