DFM confirms media reports on introducing short-selling
Dubai Financial Market confirms Reuters report which outlined the bourse’s plans to introduce covered short-selling in Q1 2017
Shortly after the Abu Dhabi Securities Exchange (ADX) announced that it would soon allow technical short-selling, Reuters reported that the Dubai Financial Market (DFM) would also introduce covered short-selling in 2017.
“DFM is planning implementation of regulated short-selling on a selected list of eligible securities in accordance with international recommendations under local market conditions in the coming months, subject to regulatory approvals of its rules,” the DFM said in a statement to Reuters on 3 January.
The DFM has since released a statement confirming the media report. “In line with its undisputed commitment to disclosure and transparency regulation, confirming of publication on media reports published on 3 January.”
No further information was given and the DFM has so far been unavailable for comment.
Short-selling hedges risk and increases liquidity, however Gulf countries have remained wary of the instrument over fears it could lead to speculative buying. The ADX said that the introduction of short-selling is an advanced step and part of the bourse’s efforts to modernise the market.