DFM to begin online trading soon

Dubai Financial Market will implement internet trading for brokers from the first quarter of next year.

Hassan Al Serkal, manager of information technology and compliance, said DFM has been working on this for some time, and the system will be ready soon.

"With volumes increasing substantially, the internet trading will help brokers to facilitate efficient trading and smooth activity," he said.

"The move is also in line with trading in developed markets, and will be a first in the GCC."

Brokers said this will allow them to trade from more terminals and from multiple locations.

There are nearly 57 brokers currently registered with the UAE stock markets.

The market capitalisation of DFM has more than doubled this year and stands at Dh129.127 billion against Dh52.51 billion in 2003.

Trading volumes have also witnessed phenomenal growth in the last three years, rising from Dh980.55 million in 2001 to more than Dh35.256 billion towards the end of November.

Al Serkal was speaking at a meeting held to annnounce Daman Investments' plans to introduce brokerage services. The company's wholly-owned brokerage arm, Daman Securities, will launch margin trading services.

The brokerage services division will offer innovative solutions and services to traders and investors in the UAE.

Shehab M. Gargash, managing director, said the company has already received approval for margin trading from the Central Bank of UAE and is currently in talks with a local bank for financing this facility.

The new brokerage division of the company, headed by Majid Julfar, comes close on the heels of a record performance by UAE equities on the back of excellent overall corporate performances over the past two years.

"The new brokerage service represents a milestone and a key initiative for Daman.

"This will catapult Daman to the forefront of the investment community in the UAE and throughout the region," said Gargash.

Gargash said Daman Investments is in the process of increasing its capital base to Dh150 million through a private placement which should be concluded within a few months.