Dubai exchange launches surveillance system

Dubai Financial Market (DFM), a Dubai-based stock exchange, has successfully implemented the SMARTS Integrity Platform, a market surveillance solution developed by Australia-based technology firm SMARTS.
By None

Dubai Financial Market (DFM), a Dubai-based stock exchange, has successfully implemented the SMARTS Integrity Platform, a market surveillance solution developed by Australia-based technology firm SMARTS.

The system, which went live on DFM on 21 December, is designed to detect any possible manipulations of market abuse and alert the user immediately. DFM said the system has achieved “a high level of accountability” since its implementation.

The SMARTS Integrity Platform takes a real-time data feed directly from the exchange’s trading engine, processes it in real time, automatically spots anomalies and generates alerts.

As well as detecting and analysing market abuse the system provides insight and analysis of trading activities. It has been adopted by more than 40 of the world’s largest exchanges, regulators and financial centres, including the London Stock Exchange, NYSE Euronext’s Paris exchange and the Dubai International Financial Centre.

“Over the years, our market surveillance team has accumulated an extensive level of experience in monitoring trading and detecting any illegal or unregulated practices. The work of this team plays a vital role in assuring investors regarding DFM’s ongoing commitment in creating an efficient, transparent and fair marketplace,” said Hassan Al Serkal, DFM’s chief operating officer, in a statement.

DFM is one of three stock exchanges in the United Arab Emirates, alongside the Abu-Dhabi Securities Exchange and Nasdaq Dubai. It focuses on the secondary trading of shares and bonds issued by domestic firms and is 80% owned by the Dubai government. The bourse announced in December that it was planning to acquire Nasdaq Dubai, currently owned by exchange group Nasdaq OMX and the Dubai government.

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