Nasdaq Dubai has said that all trading of its listed equities is now being routed through the trading platform of Dubai Financial Market (DFM). The move, under preparation since December 2009, is part of a merger agreement between the two exchanges.
Clearing, settlement and custody functions for Nasdaq Dubai equities also migrated to DFM’s systems, under an outsourcing structure which is designed to increase liquidity on Nasdaq Dubai in due course.
DFM and Nasdaq Dubai equities are now displayed together on the DFM website. Nasdaq Dubai equities also continue to be displayed separately on the Nasdaq Dubai website.
Nasdaq Dubai will remain a separate company inside the Dubai International Financial Center (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 will continue to take place on Nasdaq Dubai’s own trading platform and systems.
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.
Jeff Singer, CEO 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.”
Essa Kazim, managing director and CEO of DFM, said: “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.”