SCA, ADCCI to allow margin trading in 2010
Abu Dhabi brokerage companies' working group, the Securities and Commodities Authority (SCA), and the Abu Dhabi Chamber of Commerce and Industry (ADCCI) have in principle agreed to start the enforcement of margin trading during the second half of the year.
Brokerage firms in the UAE had so far not been allowed to engage in margin trading.
Ziad Al Dabbas, a financial analyst at the National Bank of Abu Dhabi and a member of the working group, told Emirates Business the agreement has been made with SCA in the presence of ADCCI Director-General Mohammed Al Hameli. He said the UAE markets have recovered from the global financial crisis, adding had it not been for the debt issues of a government entity, the markets here would have taken a big leap.
"Our markets are no longer in danger as was the case at the start of the crisis, and the authority has set criteria and conditions to enforce margin trading in a highly methodical manner," said Al Dabbas.
The SCA held a meeting with the ADCCI and representatives of the working group, an affiliate of the chamber, to discuss brokerage companies' functioning and to boost communication between the SCA and the brokers with regard to suggesting bills and legislations that regulate the work of financial brokerage firms.
The meeting also discussed methods to upgrade the performance of regional markets in accordance with global standards and ways to benefit from the new system to rehabilitate brokers.
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