Dubai bourses set for post-trade overhaul

Dubai bourses set for post-trade overhaul

Dubai’s leading stock exchanges are set for a pre-and post-trade technology upgrade after signing a deal with Nasdaq.

Two venues, Dubai Financial Market (DFM) and Nasdaq Dubai, will be equipped with a new multi-asset trading technology engine and cash equities clearing functions.

A statement on Tuesday said the infrastructure renovation is expected to be completed by early 2019.

It will pave the way for various enhancements at DFM, including central counterparty (CCP) clearing.

Nasdaq Dubai - which launched the first equity derivatives market in the UAE in 2008 - already shares technology platforms with DFM, which owns two thirds of its shares. 

Borse Dubai currently owns one third of the shares and was set-up in 2007 to consolidate both exchanges. 

Nasdaq OMX Group is a shareholder of DFM.

Attracting international capital is core objective for financial officials Dubai. 

Post-trade enhancements are a key step towards achieving that objective. 

James Martin, regional manager, EMEA, market technology, Nasdaq, said the deal gives a "clear signal" to the world’s capital markets that Dubai is dedicated to take their markets to the next level.

“As Dubai continues to strengthen itself as a major international financial center, it requires transforming how its markets operate and perform to meet and exceed international standards under local market conditions, especially in the area of risk management and clearing," he added. 

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