NASDAQ Dubai Monthly newsletter / December 2010: Equities traded value up 37% in November and 32% year-to-date
 
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NASDAQ Dubai Monthly | April 2011 If the newsletter is not displaying correctly, click here to read it online 

Welcome to the latest issue of NASDAQ Dubai Monthly, our online newsletter that updates market participants about developments at the exchange.

SUMMARY


  • Market prepares for DvP
  • EZW to support IPO opportunities for Jafza companies
  • Sharp rise in retail equity trading in Q1 2011
 
Exchange plans to introduce DvP soon

NASDAQ Dubai plans to adopt a Delivery versus Payment (DvP) market model in the near future for its listed shares. DvP will benefit market participants by bringing the market model further into line with international best practice, through a reduction of risk in the settlement process.

The exchange has prepared carefully for DvP and its systems are fully ready to operate it. NASDAQ Dubai plans to announce a date for the move to DvP shortly, subject to approval from its regulator, Dubai Financial Services Authority (DFSA).

NASDAQ Dubai outsourced its trading, custody, settlement and clearing functions for equities to Dubai Financial Market (DFM) in July 2010. DFM, which is regulated by the Securities and Commodities Authority (SCA), plans to adopt DvP on April 28, 2011, for shares listed on its own market.

NASDAQ Dubai to work with Jafza companies on IPO possibilities

Economic Zones World (EZW) and NASDAQ Dubai have agreed to jointly identify companies in Dubai’s Jafza free zone that many benefit from an IPO on the exchange. EZW, the operator of Jafza, will work with the exchange to provide companies with information and support, including listing workshops and training programmes.

The agreement, made through a memorandum of understanding, supports the Dubai government’s objective of promoting a favourable environment for the growth of international and regional companies. More than 6,500 companies are based in the free zone.

Mrs. Salma Hareb, Chief Executive of EZW, said: “Convenient access to capital and financing options are of paramount importance to our customers. We consistently aim to provide optimal solutions and facilities that ultimately enable our customers to grow successfully.”

Jeff Singer, Chief Executive of NASDAQ Dubai, said: “Jafza hosts many of the region’s most dynamic enterprises and NASDAQ Dubai is excited to be working with EZW to promote listing opportunities for them. The exchange enables company owners to sell shares at market value through a book build IPO, with active trading on a liquid platform used by 77 companies listed on Dubai Financial Market (DFM) as well as NASDAQ Dubai.

“We look forward to discussing IPO possibilities with SMEs in Jafza as well as larger companies, including subsidiaries of foreign entities.”

NASDAQ Dubai published proposed changes to its listing rules in January 2011, aimed at increasing liquidity on the exchange and attracting SMEs including family companies. It expects to finalise the changes shortly afer considering feedback from market participants, subject to regulatory approval.

Retail investors increase share of equities trading to 7.4% in Q1 2011

Individual investors on NASDAQ Dubai more than doubled their share of equities traded value on the exchange to 7.4% in the first quarter of 2011, up from 2.7% in the fourth quarter of 2010.

The strong increase came after NASDAQ Dubai started routing all its equities trades through the trading platform of DFM in July 2010, in order to improve access by individual investors.

The value of trades by individuals rose to 14.8 million dollars in the first quarter of 2011, up 52% from the fourth quarter of 2010. Total traded value – by institutions and individuals - fell 44% in the same period, to reach 202 million dollars in the first quarter of 2011.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: “We are delighted that the outsourcing to DFM’s systems has suceeded in attracting growing interest from individual investors in NASDAQ Dubai equities. Investors can now trade on both markets using the same investor number. We look forward to building further retail and institutional liquidity as confidence in the region’s capital markets increases.”

NASDAQ Dubai is recruiting

Head of Listing
Strong personality sought to head up our Listing Authority and uphold our reputation for exceptional international regulatory standards. Will work closely with current and potential Issuers and Dubai Financial Services Authority.

At least 5 years experience in a senior capacity in capital markets preferred, with particular knowledge of exchange regulations and ideally a listing, regulatory or audit background.

Senior Compliance Officer
Will design and implement programmes and practices to ensure that the exchange’s business, employees and Members comply with regulatory requirements. Will monitor compliance with the exchange’s Code of Conduct and Ethics, Anti-Money Laundering Policies, AMI Module and other compliance-related rules and legislation.

Market Control Manager
Will manage all operational aspects relating to trading activity on the exchange, including supervising and controlling the NASDAQ Dubai market and ensuring it operates in an orderly and fair manner. Responsible for executing Member orders both directly through the trading system and via broker markets.

To apply please visit http://www.nasdaqdubai.com/careers

 

FTSE NASDAQ Dubai UAE 20 share index rises 10% in March

The FTSE NASDAQ Dubai UAE 20 index ended March 2011 at 1,665, up 10% from the end of February and down 8% from the start of the year. The index tracks 20 stocks listed on DFM, the Abu Dhabi Securities Exchange and NASDAQ Dubai. The stocks are chosen for high liquidity and openness to foreign investment

Read more about the constituents of the index here >

 
Members Market Share

Al Futtaim HC was the most active Member of the exchange by traded value in March 2011, followed by Arqaam Securities and then Deutsche Bank.

Market share, by value of all traded instruments – March 2011
Member Market Share %
Al Futtaim HC 28.6  
Arqaam Securities 22.3  
Deutsche Bank 17.9  
EFG Hermes Brokerage UAE 12.6  
Shuaa Securities 12.2  
Emirates NBD Securities 2.4  
DBFS (Mubasher) 1.6  
Mashreq Securities 1.0  
Al Ramz 0.8  
Citigroup Global Markets 0.6  
Union Brokerage 0.1  
Al Dhabi Brokerage 0.06  
Index Securities 0.05  
UBS 0.01