Interactive Data, a market data and analytics firm, has added real-time market data from the Dubai Financial Market (DFM) and the Dubai Gold and Commodities Exchange to its PlusFeed data service in anticipation of a rise in trading activity in the Gulf region.
PlusFeed is the firm’s low-latency consolidated digital datafeed comprising of level 2 data from over 450 sources across the world. It is primarily geared towards international financial institutions to power algorithmic and automated trading strategies, although the addition of Dubai market data is more aimed at local regional investors.
“We have a significant client base in the GCC region who require PlusFeed’s real-time international content to complement their local content,” David Hann, general manager, EMEA, Interactive Data Real-Time Services, told www.thetradenews.com. “Against the background of the current economic climate, firms are looking to new markets for other opportunities for investment."
Although automated trading strategies are not currently used widely in the GCC region, Hann anticipates this to change as the region develops.
“The Middle East is an attractive investment opportunity: there is potential for algo and auto trading in the region within a few years, particularly in the Saudi market, which dominates in listings and volumes,” he said.
Several exchanges in the region, such as DFM, lack the meaningful liquidity needed to engage in high-frequency trading strategies. At present, DFM is only open from 10.00 till 14.00, imposes limits on international participation and has only 29 companies listed on its index.
But Nasdaq OMX’s recent acquisition of a stake in the Dubai International Financial Exchange, and its subsequent rebranding as Nasdaq Dubai, reflects a growing interest in developing the region’s financial markets. Following the deal last November, the exchange announced plans to extend its opening hours, develop new asset classes seek further primary and secondary equity listings.