Tuesday 19 June 2018

Abdul Jalil Yousef Darwish and Essa Abdul Fattah Kazim.

Dubai Financial Market narrows Q3 net loss

Dubai, November 3, 2012

Dubai Financial Market Company's third-quarter net loss narrowed to Dh1.7 million ($463,000) from Dh9.3 million in the same period last year, the company said on Saturday, citing increased trading activity.

The publicly owned company, which runs securities trading in Dubai, said its third-quarter revenue grew to Dh36.8 million, compared to Dh31.7 million a year ago, the bourse said in a statement.

Its net profits for the first nine months of 2012 more than quadrupled to Dh38.9 million compared to last year, the company said, citing new income from its margin trading business.

DFM chairman Abdul Jalil Yousef Darwish said: “Since the beginning of this year, the company has relentlessly endeavoured to create a thriving and supportive environment with the aim to restore normal market activity."

"For this purpose, we have accredited three new brokerage firms for Margin Trading in 2012, compared to one company to the previous year, raising the total number of DFM-licensed brokerages which offer this service to their clients, to 4," he stated.

"This is expected to leave a positive mark on the exchange’s performance, and ultimately on the company’s revenue in the future," he added.
Yousef Darwish pointed out that the total value of margin trading reached Dh337.5 million since the introduction of the mechanism.

"We believe that margin trading will gain momentum with the accreditation of more brokerage firms who have already applied," said the chairman.

"We are confident that DFM is well positioned for a new beginning given the various market infrastructure enhancements implemented over the last two years. Evidently, the best indication of this is the significant improvement in trading value and witnessing DFM as the best performing regional exchange with its general index increasing 20 per cent year to date," he added.
In his comments, managing director and CEO Essa Abdul Fattah Kazim said: “DFM is currently carrying out a series of measures to prepare its systems and procedures for the introduction of 'Market Making' and three other supportive mechanisms including; 'Securities Lending & Borrowing (SLB),' 'Short Selling' and 'Liquidity Providing.'

"These measures include the introduction of an SLB system whereby OTC SLB transactions will be settled by DFM. We are also creating new trade types for Short Selling, Market Making and Liquidity Providing to facilitate the monitoring, reporting and settlement of such trades," he remarked.

"Our plans also include developing relevant new business rules, obtaining regulatory approvals, and communicating with the DFM market participants to explain the new business model, to ultimately ensure the effective introduction of the new trading mechanisms," he added.-Reuters and TradeArabia News Service

Tags: Dubai Financial Market | trading | arab | bourse |

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