Abu Dhabi: The regulator of the UAE capital markets will support the merger of the Abu Dhabi Securities Exchange and the Dubai Financial Market, Abdullah Al Turaifi, chief executive of the Securities and Commodities Authority (SCA) said here yesterday.
He said executives of the two bourses had been meeting about their planned merger with the country's regulator waiting to hear back from them about where their talks stand.
"We are waiting for their reply, both markets," said Al Turaifi. "They have different companies, different boards, different strategies. If they think it is good for the UAE, or good for them as companies, we will support it."
Al Turaifi was speaking to reporters on the sidelines of the Fifth Annual GCC Regulators' Summit.
Separately, at the summit, Sultan Bin Saeed Al Mansouri, Minister of Economy, said that in the UAE, regulators were continuously monitoring and studying regulatory changes and their effects on the respective financial sectors around the globe.
"Many regulations have been enacted and more are on the way. Currently, market making, short selling, securities lending and borrowing and derivatives regulations are under review for a near future drafting and approval," said Al Mansouri.
"These regulations are positively impacting the UAE economy. As a result, the UAE economy has reported remarkable recovery," he added.
Short selling, in addition to reforms such as sanctioning margin trading, could boost liquidity in the UAE markets where volumes slumped to a six-year low in 2010.
Falling volumes have led many brokers to close or ask for their licences to be suspended.
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