NASDAQ Dubai routes trading through DFM platform, in landmark exchange consolidation
Outsourcing is designed to increase liquidity on NASDAQ Dubai
NASDAQ Dubai announced that all trading of its listed equities is now being routed through the trading platform of Dubai Financial Market (DFM), starting today when the market opened at 10am (6am GMT). The move, under preparation since December 2009, is part of a consolidation between the two exchanges that is unique in the GCC.
Clearing, settlement and custody functions for NASDAQ Dubai equities also migrated to DFM's systems today, under an outsourcing structure which is designed to substantially increase liquidity on NASDAQ Dubai in due course.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: "This new structure brings together more than half a million individual investors on DFM with NASDAQ Dubai's institutional investors, many of them based outside the region. It positions Dubai as a leading international capital markets hub, providing investors with excellent liquidity and issuers with a choice of regulatory frameworks."
NASDAQ Dubai remains a separate exchange regulated to international standards by Dubai Financial Services Authority (DFSA), which gave approval for the outsourcing last week. DFM is regulated by the UAE's Securities and Commodities Authority.
Essa Kazim, Managing Director and Chief Executive Officer of DFM, said: "Cooperation between the two exchanges will increase, driving the expansion of Dubai as a centre of capital markets dynamism and innovation. Today's outsourcing is a major step for us and the region. Through these growing links, DFM gains a wider array of product offerings and international expertise, while NASDAQ Dubai benefits from DFM's high liquidity and enormous base of over 552,000 investors."
DFM and NASDAQ Dubai equities are now displayed together on the DFM website www.dfm.ae. NASDAQ Dubai equities also continue to be displayed separately on the NASDAQ Dubai website www.nasdaqdubai.com.
Brokers who are members of NASDAQ Dubai access the DFM trading platform either directly, or through NASDAQ Dubai's Market Place Services function, or through another broker.
In May 2010 DFM acquired two thirds of the shares of NASDAQ Dubai through an acquisition of shares from Borse Dubai and NASDAQ OMX, the international exchange group.
NASDAQ Dubai remains a separate company inside the Dubai International Financial Centre (DIFC). It retains its own legal framework, listing rules and Members.
Under the outsourcing, NASDAQ Dubai's equities remain listed on NASDAQ Dubai and are not listed on DFM. Trading of equity derivatives continues to take place on NASDAQ Dubai's own trading platform and systems.
NASDAQ Dubai's opening hours are now 10am to 2pm UAE time (6am to 10am GMT) Sunday -Thursday. These are also DFM's opening hours. Previously, NASDAQ Dubai's opening hours were 10am to 5pm UAE time (6am to 1pm GMT) Sunday-Thursday.