The Dubai Financial Services Authority, regulator of the Dubai International Financial Centre, has given approval for stock exchange Nasdaq Dubai to migrate its trading onto the trading platform of Dubai Financial Market (DFM), the emirate's principal stock exchange.
From 11 July all listed equities trading on Nasdaq Dubai will take place on DFM's X-Stream trading platform. Under the new arrangements, listings will continue to be registered under Nasdaq Dubai.
According to the exchange, the move is part of an outsourcing strategy designed to increase trading volumes on Nasdaq Dubai and strengthen capital markets activity.
Key changes to the trading of Nasdaq Dubai equities include a change of opening hours to 10.00 to 14.00 UAE time Sunday to Thursday, from 10.00 to 17.00, bringing it inline with DFM's current hours, a reduction of the minimum trading fee for brokers to $8 from $10 and the abolishment of custody charges. Furthermore, all sell orders must also now be pre-validated, so that securities to be sold are held in the appropriate trading or custody accounts and settlement will now be done on a T+2, rather than a T+3 basis.
Clearing, settlement and custody functions for the equities traded on Nasdaq Dubai will also be handled by DFM's system from 11 July. In addition, the secondary share listings on Nasdaq Dubai that have full fungibility with their listings on other exchanges will remain in place. Trading of equity derivatives will continue to take place on Nasdaq Dubai's own trading platform and systems.
“The new structure will provide DFM's 520,000 individual investors with easier access to Nasdaq Dubai equities. It will also provide institutional investors, including those based overseas, with the same easy access that they currently enjoy,” said Nasdaq Dubai CEO Jeff Singer.
DFM, which is the exchange subsidiary of government-owned holding company Borse Dubai, purchased Nasdaq OMX's one-third stake in Nasdaq Dubai in December last year.