Regulator makes amendments to margin trading rules

Abu Dhabi: The board of directors of the Securities and Commodities Authority (SCA) has introduced a number of amendments in the rules regulating the margin trading system.

The original regulations were issued as per decision No. 25/Year 2008.

The amendments were approved by the board of directors of SCA at a meeting held today under the chairmanship of Minister of Economy Sultan Bin Saeed Al Mansouri, who heads the Authority.

The amendments come under the regulatory and supervisory role of the SCA so as to ensure the development of regulations related to the organisation of the brokerage firms.

Margin trading is buying stocks without having the entire money to do it. The exchanges have an institutionalised method of buying stocks without having the capital through the futures market.