ADSM trade boost

The Abu Dhabi Securities Market (ADSM) has granted approval to two brokerage firms to issue investor numbers on its behalf, a move that will boost trading, officials said.

Abu Dhabi Financial Services Company (ADFS), the brokerage arm of National Bank of Abu Dhabi and Al Ansari Financial Services (AAFS) have signed agreements with ADSM to issue investor numbers.

"We have allowed these two specialised brokerage firms to issue investor numbers on behalf of ADSM to ease the workload and save time. It would also bring in more investors quickly into the market," an ADSM spokes-man told Gulf News yesterday.

"We have signed agreements with both brokerages as per certain regulations and defining the terms and they have to abide by the rules," he added.

The entire process will be closely monitored since the brokers will have access to all current investors and potential investors, he said, adding that ADSM will continue to issue investor numbers.

Due to growing investor interest in stocks and with some initial public offerings (IPOs) in the pipeline, the number of investors is poised to grow rapidly.

Currently, ADSM has over 400,000 investors.

"There have been days when ADSM has issued even over 3,000 investor numbers on a single day," the spokesman added.

Al Ansari Financial Services (AAFS) began issuing investor numbers about a month ago. "We have the expertise and we can undertake the job on behalf of ADSM. It would reduce the work load of the market in issuing investor numbers," said Mohammad Al Ansari, AAFS Managing Director.

AAFS has two branches in Abu Dhabi, one in Dubai and one in Ras Al Khaimah. "We plan to open a branch in Dubai and another in Al Ain soon," he added.

Meanwhile, ADFS plans to start issuing investor numbers by the middle of this month after the brokerage firm moves into its new premises on Abu Dhabi's Corniche Road.

"By mid-November we plan to roll out the service formally. It would make things easier for customers in all branches and ease pressure on ADSM, allowing it to concentrate on core issues," said Wadah Al Taha, Manager of the ADFS Domestic Capital Markets Group.

"Such a move will benefit investors as it will reduce the time for processing up to three days by which time investors will get their numbers and start trading with ADFS,"

He added that ADFS was one of the biggest brokerage firms in the UAE with the largest data base in terms of number of investors and trade volumes.

"We will provide the opportunity for potential investors to enter the market faster in the current situation."

ADFS provides brokerage facilities through four of its branches across the UAE but expansion plans loom large. "We will open two more branches before the end of this year and we are planning to open more branches next year," said Al Taha.

The Dubai Financial Market is yet to allow brokerages to issue investor numbers.