The Middle East’s first independent trading arcade has been launched in Dubai to provide a trading floor for professionals to manage their portfolios and training for amateurs.
Set up by Dubai Professional Trading Group (DPTG), a group of experienced Dubai-based market professionals, and Dubai Multi-Commodities Centre, the arcade aims to attract independent traders to Dubai.
The arcade, based in offices in The Greens, has initial facilities for 35 traders with plans to expand to 135 by November 2008.
Desk rental will be $2,500 (Dh9,181) per month and in return traders will have access to 47 markets across the world. As part of the set-up, DPTG will invest $250,000 (Dh918,125) per year for a direct line to London so that traders can get a quick confirmation on deals.
Benedict Floyd, executive director of DPTG, who has 13 years of experience as a trader and founder of Art Dubai, said this was a great opportunity and would be a boost for the local market.
“There are three elements here for the traders, Dubai is tax free, the world timings both east and west are good and the lifestyle,” he added. “And for the exchanges there is the advantage of having established traders in Dubai to add liquidity to local exchanges,” he said.
As well as offering a seat for established traders, DPTG has set up a Total Assistance Programme to help with visas and other essential necessities for those moving to the UAE.
A training course will begin in February and is open to applicants who have an aptitude for the markets.
The DPTG training will comprise of atleast one month of intensive classroom workshops and a five-month mentoring with the initial focus on lower risk spread trading. Trainees will be required to put up a $50,000 (Dh183,625) deposit to show their solvency and learn key skills from seasoned traders. “We want to attract key professionals to low-risk trading to start with,” said Floyd.
“We want people to make $1million [Dh3.6m] a year but at the same time we do not want them to lose all their money.” DPTG will not allow the traders to trade for a third party and will operate know-your-client procedures to cut out money laundering. They also have their own risk assessment team.
James Hume is the executive chairman of the group and Kevin Day is the COO.