(MENAFN - Khaleej Times) The uae?s stock markets are flooded with liquidity as total trade has multiplied 436 per cent in the year-to-date period compared to last year says abdullah al turifi chief executive officer of securities and commodities authority or sca.
opening the sixth annual conference on “global standards – the pathway to deep and liquid markets” in dubai he said: “this significant improvement in the level of liquidity came as a result of the application of new regulations including the regulation for margin trading with 20 brokerage companies having been licenced to practice margin trading activities according to statistics; the regulation for liquidity provider and regulation for securities lending and borrowing which were part of a package of regulations attached to the market maker regulation that was issued in 2012.”
the sca’s adoption of international standards has positive results on market liquidity transparency and in-depth. on liquidity he said uae financial markets currently boast of a good level.
this was the reason uae financial markets got an emerging market status from frontier’by heavyweights such as the ftse and the standard & poor’s dow jones indexes and by the morgan stanley cital international index.
on market transparency al turifi said that the rate of disclosure of corporate governance reports stands at 98 per cent while the rate stands at 99 per cent regarding the disclosure of annual financial statement announced by local financial markets. he said that 96 out of a total of 120 companies listed on uae markets have so far implemented the xbrl in response to sca’s decision.
al turifi said that the advanced and modern system of operation applied by the sca and local markets has led to sustainable development of the market and its trading mechanisms and to significant rise in the financial instruments available to investors.
“it is no more limited to stocks but exceeds that to include mutual funds and exchange-traded funds” he said. the sca has also recently paved the way for the issuance of many regulations. it is expected that those regulations would give birth to new financial tools like subscriptions rights and covered warrants sukuks and bonds.
the years ahead will witness the issuance of other regulations which would give birth to more new tools like the gdr and swap which would attract investments to further expand the base of investors and add to uae market in-depth and diversity al turifi said.