PMA and PEX Started the Implementation of Cash Settlements for Stock Market Trading, through (BURAQ) System
The Palestine Monetary Authority - PMA and Palestine Stock Exchange- PEX started the implementation of cash settlements for stock market trading, through the PMA’s Real-Time Gross Settlement System (BURAQ).
This procedure was concluded by a joint cooperation agreement signed by the two parties last month which aims to strengthen financial stability in accordance with international best practices. It also aims to regulate the relations between the two parties by utilizing important features and services which are available in the BURAQ system.
It is worth mentioning that; settlement through the BURAQ system will allow PEX to develop future plans, which in turn shall increase the rotation speed of cash generated from trading operations. Additionally, it will reduce the current settlement period, and drive competition among banks; all this will have a positive impact on investors as well as securities companies.
The cooperation between the PMA and PEX in the implementation of cash settlements for stock market trading through the Real-Time Gross Settlement System (BURAQ) is considered the tangible embodiment of an integrated relationship between the financial and banking systems as well as the capital market sector. That in turn, will elevate the Palestinian economy’s status and strengthen sits position both regionally and globally.