Following an approval given by the board of the Securities and Commodities Authority (SCA) in its last meeting to start implementing the first phase of the self-regulatory model in the UAE securities sector, representatives from SCA, the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) have held a meeting to discuss the technical aspects of transferring jurisdiction over some financial instruments from SCA to ADX and DFM. The meeting included members of the joint committee formed by SCA, ADX, and DFM particularly for this purpose.
Under decision no. (26) of 2016 issued by the SCA board chairman on regulating some financial activities and instruments, as well as trading mechanisms, the meeting dealt with drafting a road map to transfer the targeted regulations to ADX and DFM, determining a timetable for completing the transfer, and furnishing technical, quarterly reports of the developments made in this regard.
Members of the joint committee discussed mechanisms for completing the transfer of jurisdiction over margin trading, short selling, and lending and borrowing to ADX and DFM. They also discussed the technical aspects of implementing central clearing and putting into effect the terms of the MoU recently entered into between SCA and Nasdaq during a visit made by a delegation led by H.E. Dr. Obaid Al Zaabi, Acting CEO of SCA, to Nasdaq last month.
The meeting also discussed a request by Morgan Stanley Capital International (MSCI) to regulate certain activities to make SCA’s efforts, as well as those of ADX and DFM, to develop the investment environment and the legislative infrastructure known to institutional investors.