Monday 06, March 2017 by Georgina Enzer

Dubai Financial Market launches region's first ETF trading platform

Dubai Financial Market (DFM) has launched a new trading platform for exchange-traded funds (ETFs).

The platform, the first of its kind in the region, is designed to offer better levels of integration and provide ongoing support to the ETF industry, particularly market makers, authorised participants and liquidity providers. The new ETF system is also governed by a world-class regulatory framework.

"Over the past few months, Dubai Financial Market has approved a new set of regulations developed in collaboration with traders to serve as a foundation for its new ETF platform. This follows the 2016 launch of the Afkar S&P UAE UCITS ETF and underscores our drive to further diversify our product offering for both local and global investors," said Essa Kazim, Chairman of DFM.

DFM thosted a bell ringing ceremony to celebrate the launch of this platform in the presence of Essa Kazim, Chairman of DFM, Dr. Obaid Al Zaabi, acting CEO of the Securities and Commodities Authority, as well as representatives of leading global, regional and local companies cooperating with DFM and Afkar Capital in the launch of the new platform. Afkar Capital listed the first ETF fund on DFM platform.

At the ceremony Afkar Capital also announced that it signed Al Ramz Capital as a new Authorised Participant (AP) for the fund, bringing the total number of APs to four. The firm has also appointed Beltone Financial as a Foreign Liquidity Provider, marking the first time a foreign market maker has been appointed as liquidity provider for a domestically listed fund in the Middle East.

DFM’s licensing of Al Ramz as an AP and of Beltone as a market marker came under a new regulatory framework announced as part of DFM’s commitment to optimise its ETF trading platform, the first of its kind in the region to offer a high level of integration between its regulatory frameworks and operating mechanism.

“The appointment of Al Ramz Capital as an AP falls in line with our strategy of continuously expanding our investment products and presenting our clients with a diversified basket of investment instruments to choose from," said Mohammad Al Mortada Al Dandashi, Managing Director at Al Ramz Capital.

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