Dubai : Nasdaq Dubai said yesterday that all trading of its listed equities would take place through the Dubai Financial Market's X-Stream trading platform starting June 27, subject to regulatory approval.
The move is part of an outsourcing strategy to increase trading volumes on Nasdaq Dubai and strengthen Dubai's role as a centre for international capital market activity, the exchange said.
Clearing, settlement and custody functions for Nasdaq Dubai equities would also be migrated to DFM's systems.
Nasdaq Dubai's regulator, Dubai Financial Services Authority (DFSA), said it has no objection "in principle" to the outsourcing, which was announced in December 2009.
DFM last week became the majority owner of Nasdaq Dubai.
This was through an acquisition of shares from Borse Dubai and Nasdaq OMX, the international exchange group.
"This new structure will create the same look and feel for trading on both of Dubai's exchanges, which will stimulate trading of Nasdaq Dubai equities by DFM's 552,000 retail and other investors," Nasdaq Dubai Chief Executive Jeff Singer said.
"Combined with Nasdaq Dubai's international regulatory standards and links with international investors, this will create a powerful listing and trading hub that is unique in the GCC."
