The United Arab Emirates' financial market regulator has issued rules allowing the issuance and trading of covered warrants, a step towards developing its equities market.

The Securities and Commodities Authority set conditions for banks and other companies to issue the listed, tradable instruments, which give investors the right to buy or sell stocks or other securities at specified prices.

The conditions, described in a statement posted on the SCA's website (sca.gov.ae/) this month, include a licensing regime for issuers of covered warrants and disclosure requirements.

The SCA also ordered studies of best international practice so that regulations covering the listing of bonds on the country's securities markets can be passed in the first half of this year, the statement said, without elaborating.

Meanwhile Reuters said that a Jan. 5 story saying the UAE  issued rules for the issuance and trading of covered bonds is wrong and is withdrawn; it quoted an incorrect story by state news agency WAM, which said the rules were for covered bonds.

In fact, the rules issued were for covered warrants. – Reuters