Dubai Financial Market (DFM), in co-operation with the Emirates Securities and Commodities Authority (ESCA), has held a forum for DFM-listed brokers.

A senior delegation representing the US Securities and Exchange Commission (SEC) and the New York Stock Exchange (NYSE) also participated in the forum.

Participants in the forum discussed general topics related to stock markets, including capital adequacy and margin trading.

The event was held on the sidelines of the US delegation’s visit to the UAE, where they met DFM’s senior management.

Robert D Strahota, assistant director of the SEC, spoke about key issues related to the regulation of margin trading.

He said: “The purpose of regulating margin trading is to assure the prudent regulation of brokers and dealers by preventing the extension of credit beyond certain levels. These regulations are also aimed at promoting investor protection by preventing the over-extension credit, which may lead to increased risk and speculative abuse.”

He added: “It may also be necessary to regulate extension of credit by banks and non-bank lenders for the purpose of purchasing or selling securities.”

Strahota noted: “There should also be minimum requirements established by the government regulator, and exchanges can be also given authority to ensure compliance with margin rules and to discipline members for noncompliance.”

This high-level delegation’s visit will contribute to enhanced relations between capital markets in the UAE and US.

This is also a unique opportunity to exchange viewpoints and expertise about the latest developments in capital markets.

DFM believes that such initiatives will help our bourses to implement international practices adopted by these leading markets.

This visit will also spread awareness about DFM’s achievements in the US capital markets, especially in terms of developing new trading systems, indices, settlement and other initiatives.

The US delegation met with Essa Kazim, DFM board chairman; Maryam Fikri, director of depository, clearing and Settlement department, DFM; Fahima Al Bastaki, manager of listing and disclosure, DFM; Hassan Al Serkal, director, operations, DFM; and Jamal Al Khadhar, director, Research and Market Relations, DFM.  

Dubai Financial Market was established as a public institution having its own independent corporate body.

DFM is operating as a secondary market for 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 market commenced operations on March 26, 2000. TradeArabia News Service