DFM enrols 5 brokerage firms to Margin Trading

06/08/2014 01:53 AST

Dubai Financial Market (DFM) on Tuesaday announced that “Al Safwa Islamic Financial Services”, “Global for Shares & Bonds”, “Al Fardan Financial Services”, “Al Brooge Securities” and “Al-Sharhan Stock Center” have been accredited to provide Margin Trading, lifting the total number of Dubai Financial Market brokerage firms providing this service to 24 companies.

Margin Trading permits brokerage companies to fund a percentage of the market value of securities traded, and secure as collateral for the same securities or any other collateral as required by the SCA’s license.

Firms

DFM is currently processing similar applications from other brokerage firms in collaboration with the Securities and Commodities Authority (SCA).

Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body.

Dubai Financial Market operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market.

The DFM commenced operations on March 26, 2000. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of Dhs8 billion, DFM became a public joint stock company.

Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM Company through Borse Dubai Limited.

The Gulf Today