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Trading on both exchanges with one investor number:
DFM welcomes trading of Nasdaq Dubai securities through its trading platform
Essa Kazim: the consolidation will further diversify investment opportunities for over 567,000 DFM investors and increase the liquidity of Nasdaq Dubai
Dubai, July 11th 2010: Dubai Financial Market (DFM) welcomed today the commencement of the outsourcing agreement with Nasdaq Dubai, in which the trading, clearing, settlement and custody of Nasdaq Dubai securities will operate through the trading platform of DFM, the majority shareholder of Nasdaq Dubai, as of Sunday July 11th 2010.
Following DFM’s announcement in December 2009 of its intention to fully acquire Nasdaq Dubai, by May 2010, DFM (PJSC) completed the acquisition of two thirds of the shares of Nasdaq Dubai from Borse Dubai and Nasdaq, the international exchange group. While working in parallel with the completion of the consolidation, DFM (PJSC) will acquire the remaining third in due course. The successful completion of the outsourcing agreement marks a major development in the consolidation process between the two exchanges.
Under the new arrangements, investors will be entitled to trade on both exchanges using one Investor Number (IN). Investors who do not have an Investor Number from DFM can apply to the exchange for their number free of charge.
Nasdaq Dubai securities will be quoted, traded, cleared and settled in US Dollars. DFM trading hours from 10.00 AM to 2.00 PM will be applied to the trading of these securities. Trading in Nasdaq Dubai securities can be executed through 11 common brokers who are licensed by the regulators of both exchanges. Additionally, settlement at DFM and Nasdaq Dubai is handled by 4 banks, of which 2 are common members.
Trades of Nasdaq Dubai securities will be settled as per DFM’s settlement cycle T+2, instead of T+3.
Essa Kazim, Managing Director and Chief Executive Officer of DFM, said: “Today’s commencement of outsourcing is a major step for DFM, Dubai and the region. We are confident that the increased links and consolidation between the two exchanges will benefit all partners and participants including issuers, investors and brokers. The trading of Nasdaq Dubai securities through the DFM platform not only provides investors with a wider array of product offerings, it also enables DFM’s solid base of over 567,000 investors to trade in these securities, both of which will further enhance liquidity and activity on Nasdaq Dubai.”
“Undoubtedly, the outsourcing of trading, clearing, settlement and custody of Nasdaq Dubai securities is a key milestone in the consolidation between the two exchanges and offers a wealth of practical benefits for various participants. We are grateful for all our members and participants’ efforts who have worked closely with DFM and Nasdaq Dubai to achieve a successful migration. This key development moves us much closer to the completion of the consolidation which will ultimately drive the expansion of Dubai as a centre of capital markets dynamism and innovation.”
-Ends-
About Dubai Financial Market: Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of AED 8 billion, DFM became a public joint stock company. Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM Company through Borse Dubai Limited. www.dfm.ae
For further information, please contact:
Atef Fathy
Vice President - Public Relations
Dubai Financial Market
Tel: +971 (4) 3055334
Email: afathy@dfm.ae
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