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NASDAQ Dubai Monthly | June 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


  • Outsourcing to DFM to go live on 11 July, 2010
  • Equities traded value rises 65% in first five months of 2010
  • Most active Members in May by value: Deutsche, HSBC, Credit Suisse, Citigroup
 
Outsourcing to DFM to go live on 11 July

NASDAQ Dubai has announced that all trading of its listed equities will take place through the X-Stream trading platform of Dubai Financial Market (DFM), starting on Sunday 11 July 2010, subject to final regulatory approval.

NASDAQ Dubai is working with its Members, issuers and other market participants to ensure that the migration takes place smoothly and greatly appreciates their support. The move is part of an outsourcing strategy that was announced in 2009 in order to increase trading volumes and strengthen Dubai's role as a centre for international capital markets activity.

At the same time, clearing, settlement and custody functions for NASDAQ Dubai equities will also migrate to DFM's systems. The Dubai Financial Services Authority stated this month that it has no objection in principle to the outsourcing.

A decision to move the outsourcing date from Sunday 27 June was taken after consultation with market participants. The new date allows them more time to carry out essential end-to-end testing and make other preparations.

Last month DFM became the majority owner of NASDAQ Dubai through an acquisition of shares from Borse Dubai and NASDAQ OMX, the international exchange group.

Unique listing and trading hub

Jeff Singer, Chief Executive of NASDAQ Dubai, said: "The outsourcing will create the same look and feel for trading on both of Dubai's exchanges, which will stimulate trading of NASDAQ Dubai equities by DFM's 552,000 retail and other investors. Combined with NASDAQ Dubai's international regulatory standards and links with international investors, this will create a powerful listing and trading hub that in is unique in the GCC. Issuers can choose which exchange to list on according to their commercial and regulatory needs.

Final DFSA approval for the outsourcing is conditional on several milestones being met.

NASDAQ Dubai remains a separate company regulated by the DFSA, the financial services regulator inside the Dubai International Financial Centre (DIFC). It will retain its own legal framework, listing rules and Members, and trading of equity derivatives will continue to take place on NASDAQ Dubai's own trading platform and systems.

NASDAQ Dubai's equities will remain listed on NASDAQ Dubai, and will not be listed on DFM under the outsourcing plan.

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

Equities trading values rise 65%

The value of equities traded on NASDAQ Dubai rose by 65% in the first five months of 2010 from the same period in 2009, reaching 667 million dollars. Equities volumes, by contrast, fell by 7% to 1.46 billion shares.

The difference between the value and volume percentages is largely due to a substantial increase in the share price of DP World.

Traded equities value in the month of May 2010 reached 93 million dollars, 21% lower than in May 2009. Volumes in May 2010 were 198 million, 40% lower than the year before.

Measured by percentage change, NASDAQ Dubai's equity value and volume figures were the best performing of any UAE stock exchange in the first five months of 2010, as well as in the month of May 2010, compared to the same periods in 2009.

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

 
FTSE NASDAQ Dubai UAE 20 share index falls 13% in May

The FTSE Nasdaq Dubai UAE 20 index ended May 2010 at 1,651, 13% lower than at the end of April 2010 and 11% lower than at the start of the year. The index comprises DP World as well as 10 stocks on the DFM and 9 on the 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 May 2010, followed by HSBC and then Credit Suisse and Citigroup. EFG Hermes was the most active regional Member, followed by SHUAA Capital and then Arqaam Capital.

Market share, by value of all traded instruments – May 2010:
Member Market Share %
Deutsche Bank 23.98%
HSBC 17.96%
Credit Suisse 15.55%
Citigroup 15.55%
EFG Hermes 9.65%
SHUAA Capital 4.13%
Merrill Lynch 3.51%
Goldman Sachs 2.33%
JP Morgan  1.43%
Arqaam Capital 1.32%
Mashreq  Securities 1.18%
Morgan Stanley  0.96%
Mubasher 0.85%
Al Ramz Capital  0.41%
MAC Capital  0.41%
NBD  0.39%
Emirates NBD Capital   0.30%
UBS 0.04%
Union Brokerage  0.04%
Wood 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 following two-hour introductory courses will be held in Dubai in June, in conjunction with DFM. The trainer will be provided by Total Solutions, a consulting firm based in DIFC.

  • Compliance Function (Arabic)
    June 22, 2010
  • Business Ethics and Market Abuse (Arabic)
    June 30, 2010

Sign up for NASDAQ Dubai Academy courses here.