Tuesday, September 18, 2007

Dubai Financial Market

Dubai Financial Market

In line with the high international standards prevailing in today’s professional and technology driven securities markets, the Dubai Financial Market has been established to create a fair, efficient and transparent marketplace that serves the interest of the national economy. It provides a forum for the trade of securities, providing investors with opportunities to invest their funds in a manner that benefits them and serves the interest of the UAE economy.

DFM has been set up to facilitate the protection of investors against unfair and improper practices. Codes of conduct have been established for brokers and other operators in the DFM with a view to enhance their efficiency and professional performance. DFM is equipped with state of the art systems and technology to provide maximum liquidity in securities trading through the interaction of supply and demand to determine the fair price of securities. In addition, the DFM protects the rights of the investors by building the foundation, which regulates the investors trading activities. The DFM has a fully integrated and automated system that also ensures speed and accuracy in the transfer of share ownership.

Objective of Dubai Financial Market:

Dubai Financial Market has been established as a public institution having its own independent body corporate. At its first stage, DFM is intended to operate as a secondary market for trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the Local Governments and public institutions in the country, investment units issued by local investment funds and any other financial instruments, local or foreign, which are accepted by the Market. Located in the Dubai World Trade Center, the DFM constantly seeks to accomplish its objectives of creating a transparent, fair and efficient marketplace capable of protecting investments and savings of investors in general and small investors in particular. In order to achieves these objectives the Market seeks to:
Provide the opportunity to invest in securities in a manner that better serves the national economy.

Creating liquidity in the marketplace through the people interaction of supply and demand based on fair and equitable trading practices between investors.
Implementing rules of professional conduct and discipline between brokers and DFM staff to maintain a high level of integrity and provide them with proper training.
The collection of data and statistics bout traded securities and issuing reports based on this information.

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