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 | February 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


  • Bank of America Merrill Lynch joins derivatives market
  • Retail investors increase equities trading to 13%
 
Bank of America Merrill Lynch boosts equity derivatives market

Bank of America Merrill Lynch has joined NASDAQ Dubai's equity derivatives market as its first General Clearing Member (GCM). This will inject liquidity into the fledgling market by providing vital post-trade clearing services for other brokers, as well as Bank of America Merrill Lynch’s own trades.

Brooks Stevens, Head of EMEA Futures and Derivatives Clearing Services for Bank of America Merrill Lynch, said: 'As the first GCM on the UAE's only on-exchange equity derivatives market, we look forward to playing a leading role in facilitating increased trading capacity within the region. NASDAQ Dubai's equity derivatives platform provides investors with unique tools to hedge their exposure to shares of UAE and other Middle East companies.'

NASDAQ Dubai's equity derivatives platform consists of futures listed on 21 individual UAE companies and on the FTSE NASDAQ Dubai UAE 20 share index. Companies in the index include DP World, which is listed on NASDAQ Dubai, and leading companies listed on the Dubai Financial Market and the Abu Dhabi Securities Market.

Index constituents are selected for high market capitalisation and liquidity as well as openness to foreign investment.

Dean Noble, Head of Business Development of NASDAQ Dubai, said: 'Bank of America Merrill Lynch's arrival as a GCM is a landmark in the development of our equity derivatives platform. The market has huge potential for growth in a region where hedging mechanisms are in short supply and investors need to offset risk.'

Upsurge in trading by retail investors

Retail investors increased their share of equities trading on NASDAQ Dubai to 13% of total traded value in January. Institutional investors accounted for 87%.

The retail share rose from 2% in August 2010, which was the first full month of trading after NASDAQ Dubai started routing all its equities trades through the trading platform of Dubai Financial Market (DFM) in mid-July. In the second week of January 2011, the retail share of trading rose as high as 26%.

The value of retail trades on NASDAQ Dubai also rose, from 1.6 million dollars in August 2010 to 6 million dollars in January.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: “The growth in retail trading indicates that the switch to DFM’s platform has succeeded in attracting more retail investors to NASDAQ Dubai’s market. Retail investors now trade on both exchanges in the same way, using the same Investor Number. A healthy mix of retail and institutional trading encourages greater liquidity and promotes Dubai’s expansion as a leading capital markets hub.”

The increase in retail trading was achieved in spite of a decline in total traded value by all investors from 78.7 million dollars in August 2010 to 47.1 million dollars in January 2011, in a challenging period for capital markets across the region.

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. The successful candidate 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. Applicants will ideally come from a listing, regulatory or audit background.

Listing Analyst
Responsible for monitoring Issuers’ compliance with the Listing Rules. Degree in business/law/economics essential plus 2-3 years experience working in capital markets.

Temporary Associate General Counsel
Opportunity to join our in-house Legal/Regulatory team for a six-month assignment, with possible extension for the right candidate. Background in capital markets, regulation, and listing rules preferred. Strong business experience is a plus.

To apply please visit www.nasdaqdubai.com/careers

 

FTSE NASDAQ Dubai UAE 20 share index falls 8% in January

The FTSE NASDAQ Dubai UAE 20 index ended January 2011 at 1,656, down 8% from the end of December 2010. The index tracks 20 liquid stocks listed on DFM, the Abu Dhabi Securities Exchange and NASDAQ Dubai.

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 January 2011, followed by Arqaam Securities and Deutsche Bank.

Market share, by value of all traded instruments – January 2011
Member Market Share %
Al Futtaim HC 30.81  
Arqaam Securities 20.99  
Deutsche Bank 16.21  
EFG Hermes UAE 13.14  
Emirates NBD Securities 7.49  
Shuaa Securities 4.15  
DBFS (Mubasher) 2.63  
Mashreq Securities 1.54  
Index Securities 1.21  
Al Ramz 0.95  
Union Brokerage 0.36  
Al Dhabi Brokerage 0.25  
CBD Financial Services 0.14  
Citigroup Global Markets 0.12  
 
NASDAQ Dubai Academy

NASDAQ Dubai Academy provides training courses in English and Arabic for market participants including issuers, Members, investors and the general public.

Details of upcoming courses will be provided in the next newsletter.

Sign up for NASDAQ Dubai Academy courses here.