Nasdaq Dubai will trade all of its listed equities through the X-Stream trading platform of Dubai Financial Market (DFM), starting June 27, 2010, subject to final regulatory approval, as part of an outsourcing strategy to increase trading volumes.

At the same time, clearing, settlement and custody functions for Nasdaq Dubai equities will also migrate to DFM’s systems. Nasdaq Dubai’s regulator, Dubai Financial Services Authority (DFSA), stated has no objection in principle to the outsourcing, which was announced in December 2009.

Recently, DFM became the majority owner 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 will create the same look and feel for trading on both of Dubai’s exchanges, which will stimulate trading of Nasdaq Dubai equities by DFM’s 552,000 retail and other investors. Combined with Nasdaq Dubai’s international regulatory standards and links with international investors, this will create a powerful listing and trading hub that in is unique in the GCC. Issuers can choose which exchange to list on according to their commercial and regulatory needs.”

Essa Kazim, managing director and CEO of DFM, said: ”Since the inception of DFM in 2000, we have remained committed to playing a vital role in developing regional financial markets through various initiatives and today’s announcement is a major step for us and the region. Through its growing links with Nasdaq Dubai, DFM gains a wider array of product offerings and international expertise.

“Collaboration between the two exchanges will increase, promoting higher liquidity and more listings on both of them from across the region and beyond. Dubai will expand as a center of capital markets dynamism and innovation.