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NASDAQ Dubai Monthly | July 2010 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


  • Landmark outsourcing to DFM went live successfully on 11 July
  • More than 50 DFM brokers attended workshop on joining NASDAQ Dubai
  • Equities traded value rose 52% in first six months of 2010
  • Most active Members in first six months of 2010: Citigroup, Deutsche Bank, HSBC
 
Active trading follows outsourcing to DFM

NASDAQ Dubai successfully outsourced its equities trading to the systems of Dubai Financial Market (DFM) on July 11.

A welcome for the consolidation appears on The NASDAQ Tower above Times Square, New York.

This landmark consolidation was followed by active trading by regional and international brokers. In the first six days, 25.2 million shares changed hands and the most active brokers by value were Deutsche Bank, EFG-Hermes and Al Futtaim HC Securities.

NASDAQ Dubai greatly appreciates the support it has received from its Members, issuers and other market participants to ensure a successful outsourcing.

Brokers workshop

From Left - Dean Noble, Head of Market Operations at NASDAQ Dubai, Khalifa Rabba, Head of Market Control Department at DFM and Maryam Fikree, Chief Operation Officer at DFM, hold a workshop for DFM brokers.

More than 50 DFM brokers attended a joint NASDAQ Dubai and DFM workshop on July 14 to learn about the benefits of the outsourcing and how to become Members of NASDAQ Dubai.

In order to trade on both exchanges, brokers need to be a Member of both. Eleven DFM Members, including many of the most active ones, are already NASDAQ Dubai Members.

NASDAQ Dubai has aligned its trading fees for brokers so that they are similar to DFM’s. As a result, NASDAQ Dubai’s minimum fees for brokers have been reduced.

Jeff Singer, Chief Executive of NASDAQ Dubai, said "Since the success of our outsourcing we have received more than 10 enquiries from DFM brokers that wish to join our market. We look forward to welcoming more participants to the merged liquidity pool of retail and institutional investors that the outsourcing has created." Click here to read more about the workshop.

Under the outsourcing, all trading of NASDAQ Dubai equities now takes place through the X-Stream trading platform of DFM. Clearing, settlement and custody functions for NASDAQ Dubai equities have also migrated to DFM’s systems.

Details of the outsourcing can be viewed here.
Questions can be sent to the NASDAQ Dubai Consolidation Web Desk here.

NASDAQ Dubai is recruiting

We are looking for a dynamic New Listings Manager to achieve our core priority of securing new IPOs for the exchange, as well as other listings. The successful candidate will be experienced in the art of building relationships with senior members of corporations, investment banks and law firms. Expert communications and salesmanship skills required, together with at least 5 years experience in capital markets and an excellent understanding of investment products.

For more information see www.nasdaqdubai.com/careers

Equities trading value rises 52% in first six months

The value of equities traded on NASDAQ Dubai rose by 52% in the first six months of 2010 to 728 million dollars, from 479 million dollars in the same period of 2009. Equities volumes fell by 10% to 1.58 billion shares, from 1.75 billion.

Measured by percentage change, both the value and volume figures were the best performing of any UAE stock exchange in the six-month period, compared to the same period in 2009.

Traded equities value on NASDAQ Dubai in the month of June 2010 fell by 19%, reaching 61 million dollars, compared to 75 million dollars in June 2009. Equities volumes were 123 million, 35% lower than the total of 189 million in June 2009. The June 2010 figures were also the best performing of the UAE’s stock exchanges, measured by percentage change from the year before.

Citigroup was the most active Member of the exchange by equities volume in the first six months of 2010, followed by Deutsche Bank and then HSBC. EFG Hermes was the most active regional Member during the period, followed by Arqaam Capital and then Shuaa Capital.

Exchange Views

In his latest monthly column, Jeff Singer, Chief Executive of NASDAQ Dubai, argued that consolidation of stock exchanges can produce many benefits, such as a combined liquidity pool. The consolidation between NASDAQ Dubai and DFM is an example of what can be achieved. The Exchange Views column was published in Gulf News and Al Khaleej.

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

The FTSE Nasdaq Dubai UAE 20 index ended June 2010 at 1,516, 8% lower than at the end of May and 18% lower than at the start of the year. The index comprises DP World as well as 10 stocks on DFM and 9 on ADX. Its stocks are chosen for large market capitalisation and investability and are free float weighted. Futures contracts listed on the index by NASDAQ Dubai have been designed as a hedging and investment mechanism for GCC and international investors.

Read more about the constituents of the index here >

 
Members Market Share

Deutsche Bank was the most active Member of the exchange by value of all traded instruments in June 2010, followed by HSBC. EFG Hermes was the most active regional Member, followed by Arqaam Capital.

Market share, by value of all traded instruments – June 2010
Member Market Share %
Deutsche Bank 25.83%
HSBC 21.34%
EFG Hermes 17.82%
Arqaam Capital 10.52%
Citigroup  7.44%
Merrill Lynch 5.20%
Shuaa Capital  3.19%
Mashreq  Securities 2.15%
NBD  2.07%
Morgan Stanley  1.07%
Mubasher 1.05%
Goldman Sachs 0.80%
Emirates International Securities  0.60%
Al Ramz Capital  0.32%
Credit Suisse 0.25%
MAC Capital  0.21%
Union Brokerage  0.06%
SusqueHanna 0.04%
Wood 0.03%
UBS 0.01%
 
NASDAQ Dubai Academy

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

The Academy is preparing training courses on Anti-Money Laundering, Compliance and Market Abuse, to run from mid-September after Ramadan. Dates will be announced in our next newsletter.

Sign up for NASDAQ Dubai Academy courses here.