Dubai: The Dubai Financial Market (DFM) said on Tuesday that its allocation account service is gaining traction, with Arqaam Securities actively utilising it to conduct trade for its client base of institutional funds.
Arqaam facilitated transactions with a total value exceeding Dh20 million over various sessions this month on behalf of an institutional fund manager who does allocation to multiple sub-funds.
DFM launched the service early last year, the first among regional markets to do so, as it pushed to diversify products and services in line with international best practice while coming up with mechanisms and services that support the trading activities of various market participants.
The service enables brokerage firms to use a combined account with the clearing-house to execute buy and sell transactions involving securities on behalf of their clients, provided that such transactions are allocated to the clients’ accounts during the allocation period within 45 minutes from the end of the trading session.
Currently, three DFM members are licensed to provide allocation account services to their clients and the exchange is processing applications from other brokerages seeking the licence.
Increased utilisation of the service points to its importance for brokerage firms serving international funds, as it has provided members with a unique and transparent solution that caters to the requirements of international fund managers, thus paving the way for further market participation from their side.
Arqaam Securities is a member of the DFM and part of the Arqaam Group, a specialist investment bank in emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which it operates.