DIFX plans to extend hours of trading
The Dubai International Financial Exchange (DIFX) plans to allow companies to list their stock in dirhams and increase trading hours, to boost liquidity and have a broader appeal to regional investors, according to CEO Jeffrey Singer.
At present, the stocks listed on the DIFX are currently traded in US dollars.
Speaking at an investor meeting at the DIFC yesterday, Singer, who took over as CEO last month, said the exchange has sought approval from the regulator – Dubai Financial Services Authority – so that it could allow dirham-denominated stocks to list, extend trading hours and open on Sundays.
The various moves will help attract more investors and listings, Singer said.
The DIFX will gain further momentum as the international exchange serving its region, through new listings and strengthening links to individual and institutional investors The growth of the exchange supports Dubai's role as a financial centre and the development of the capital markets across the Middle East," he said.
The DIFX, which opened nearly two years ago, is trying more companies to list on it as well as increase liquidity, said Singer. At present, the DIFX has five primary listings, 10 secondary listings, 22 structured products and 19 sukuks.
Also among the other steps, he said brokers should be able to trade Dubai Financial Market (DFM) and DIFX in one screen. "We want to have a strong pipeline so that more and more brokers can connect to it," he said.
About the two recent listings on the DIFX (Depa and Damas), he said liquidity and trading in the two counters were satisfactory, while trading in DP World were doing well with volumes reaching 14 million a day last week.
Damas raised $270.6 million from institutional investors at a price of one dollar per share. The company listed on July 8. Last October, DP World, listed on the DIFX in the Middle East's largest IPO valued at $4.96 billion. Saying his main aim was to "go and create environment so that more companies are listed, which will lead to more trading (liquidity)", he said , adding that he will look at ways to boost retail trading on the bourse.
Since taking over as DIFX CEO, Singer has met bourse officials and investors in a 'listening tour'. "I have no huge vision, and want to execute things quickly," he said.
He said many companies in the West were keen to tap the $5 trillion of investible capital available in the region. Singer said a Nasdaq OMX investors conference in Dubai in Dubai in November, which is expected to attract top 20 blue chip companies to the emirate.
"The Dubai conference will help in becoming a bridge for the companies, wishing to the Gulf's high level of liquidity," said Singer.
On the plans for launching of the derivatives products, Singer said last month the DFSA allowed DIFX to go ahead with it." But he said derivates trading will be launched soon, but did not give any specific launch date. "The trading system is and the clearing system is ready, " added Singer. The trading platform, supplied by Nasdaq OMX, will be used for all trades on the DIFX including equity derivatives.
He said the trading platform will provide a proven world-class trading platform that will help to drive the expansion of the DIFX as the international exchange serving the Middle East."
"Our switch to the new platform also marks a significant step in the integration of the global capital markets, by strengthening the DIFX's links with Nasdaq OMX."
Nasdaq OMX bought a one-third stake in the DIFX in February 2008.
Back-office
Dubai Financial Market and Dubai International Financial Exchange said they plan to "align" back-office operations to help cut costs.
"The DFM will start using technology from Nordic bourse operator OMX AB, as its sister exchange already does," said Essa Kazim, chairman of parent company Borse Dubai, yesterday.