In line with the regulations introduced by the Securities and Commodities Authority of the UAE on margin financing, DFM has recently implemented a new service for brokerage companies undertaking margin financing to transfer margin financing facilities between different brokerage companies.
Brokerage House Securities, one of the UAE’s leading brokerage firms, has recently been accredited by DFM as the first brokerage company to execute a Margin Liability Transfer on the DFM. This new service was introduced recently by DFM in response to regulatory changes. To date, DFM has processed AED 8 million worth of such transfers.
"The DFM is always committed to provide market participants with world-class regulatory infrastructure that caters to the ever evolving their requirements. Accordingly, we are proud to be at the forefront of implementing this new service in response to regulatory changes that creates greater flexibility for investors and brokerage firms alike. We aim to leverage on our unique position in Dubai to further enhance our ecosystem enabling our market participants to grow their business.’ Maryam Fekri, Chief Operations Officer, EVP and Head of Clearing, Settlement and Depository," DFM said.
"We are continuously evolving our strategies with the intention of best serving our clients; discerning investors who understand the merits of long-term foresight. We feel that our company will benefit greatly from the addition of Margin Liability Transfer procedure, inevitably benefitting our clients who will have a tool to transfer securities financed by margin from one brokerage company to another in a secured and organized manner. Being the first brokerage house to do so, it is another proud benchmark, as we grow with our industry," noted Abdel Hadi Al Sa’di, Managing Director of Brokerage House Securities.