Brokerage firm closes shop

The number of securities brokerage firms in the UAE reduced again with the suspension of brokerage activities of Dubai-based Al Buhaira Securities

Al Buhaira has been a brokerage firm for both Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange.

The company has asked its clients to contact its branches in both markets within two weeks to settle and clear their positions.

The move came in the wake of apprehension of market experts and officials at the Securities and Commodities Authority of a consolidation of the brokerage industry due to the sharp decline in turnover on the DFM and ADX.

According to statistics released by ADX, eight brokerage firms did not trade during February as the total number in brokerages list dropped to 88 from 96 companies during 2009.

There are increasing merger and acquisition talks among brokerages.

"In the current market conditions only large firms with a decent volume can survive," said a spokesman of a firm.

Almost 59 of the total 88 firms accounted for less than one per cent each of the total trade value on the ADX during February 2010.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.