Wednesday 11, January 2017 by Georgina Enzer

Nasdaq Dubai welcomes European Union's recognition of DFSA's central counterparty fram

The regulatory framework of Dubai Financial Services Authority (DFSA), for central counterparties, has been classified as equivalent to that of the European Union and Nasdaq Dubai has welcomed the announcement.

Nasdaq Dubai is the DFSA-licensed central counterparty (CCP) for equities and derivatives trading in the Dubai International Financial Centre (DIFC).

“This international acknowledgement of the high calibre of DFSA’s regulatory regime will encourage further cross-border investment in Nasdaq Dubai equities and equity futures. As the region’s international financial exchange, we are taking steps towards increasing participation in our market by overseas clearing entities,” said Hamed Ali, Chief Executive of Nasdaq Dubai.

The classification of the DFSA’s CCP framework was made by the European Commission. Its effect is to reduce the regulatory burden of participating in the market.

Nasdaq Dubai’s CCP services reduce systemic trading risk for market participants, who already include a substantial international investor base.

As well as offering investment in shares of UAE and international companies, Nasdaq Dubai opened an equity futures market in September 2016 in leading UAE-listed companies.

Together with its determination about the DFSA, the European Commission announced equivalence decisions for the regulatory frameworks for CCPs in a number of countries. The UAE is the only GCC nation among these.

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