The European Securities and Markets Authority (ESMA) has granted Tier 1 third-country central counterparty (CCP) recognition to Nasdaq Dubai and Dubai Financial Market’s (DFM) subsidiary, Dubai Clear.
The firms are currently the only CCPs in the Middle East and North Africa (MENA) region to gain ESMA Tier 1 status. The recognition came into effect on 31 December 2025.
The accreditation is expected to enhance cross-border connectivity between European and Dubai-based capital markets, and bolster the United Arab Emirates’ (UAE) positioning across post-trade services globally.
Moreover, a greater influx of market participants from the EU are expected to join Dubai Clear and Nasdaq Dubai as clearing members.
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Specifically, the accolade of ESMA Tier-1 status allows CCPs to be recognised as non-systemically important to the EU, to enable easier recognition through home authority deference when operating in the EU financial system.
The recognition comes under the EU’s European Market Infrastructure Regulation (EMIR), which recently went under a refit implementation, with the aim of raising data quality and increasing transparency across the derivatives market through changes to the EMIR reporting regime.
The changes came into force in the EU on 29 April 2024, while the refit started in the UK later that year, on 30 September.
Hamed Ali, chief executive of Dubai Financial Market and Nasdaq Dubai, said: “This milestone reflects the progress Dubai has made in building market infrastructure that global investors recognise and rely on.
“ESMA Tier 1 recognition strengthens Nasdaq Dubai’s ability to connect regional opportunities with international capital and supports Dubai’s Capital Markets Development Strategy by enhancing access, efficiency, and investor confidence.”