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Stock, Gold & Commodities Exchange in Dubai

Stock Exchange

Dubai stock market trading began in March 2000 in the Dubai Financial Market (DFM).

DFM operates 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 Centre, the Market is regulated by the Emirates Securities and Commodities Market Authority (ESCA). Its rules ban insider trading and enforce transparency rules and release of information guidelines.

The fall of Saddam Hussein in Iraq led to a major influx of investment in the stock markets of the United Arab Emirates, including the Dubai Financial Market, with market capitalisation jumping significantly to reach a level of AED4.5 billion ($1.23 billion), up 17%, by late 2003.

DFM has an electronic share registry, order-driven trading and a clearing system that can support six trading floors and link more than 3,000 terminals. Share tickers are displayed on TV, the internet, Reuters, Bridge and Teletext. Trading hours are divided into a pre-opening session between 10-10:30am and a main session from 10:30am to 12:30pm, Saturday through Thursday.

In March, 2004, the UAE's stock market regulator stepped up the region's campaign against money laundering and terrorist financing. In a circular sent to the Abu Dhabi and Dubai stock exchanges, and to 25 stockbroking firms in the United Arab Emirates, the UAE Securities and Commodities Authority announced that: "You are requested to verify all information and documents when accepting cash or opening accounts for clients."

Gold & Commodities Exchange (DGCX)

The DGCX commenced trading on November 22, 2005, and is the first international commodities derivatives market in the Middle East region. DGCX offers a range of commodities, commencing with gold futures, with electronic trading accessible from anywhere in the world.

Transactions on the DGCX take place on a state-of the-art electronic trading platform.

The exchange is established within the Dubai Metals and Commodities Centre (DMCC), which is a strategic initiative of the Dubai government created to establish a commodity market place in Dubai. The DMCC is also a free zone authority offering 100% business ownership, a guaranteed 50-year tax holiday and freehold property options.

The DGCX is regulated by Emirates Securities and Commodities Authority.

Alongside the DGCX, the newly created Dubai Mercantile Exchange (DME) is likely to focus on energy trading starting with crude futures, and will not compete against the DGCX.

In February 2006, the DME unveiled its plans to launch a new trading hub concept on an electronic trading floor, in an effort to capitalise on local liquidity, draw regional market participants and attract financial institutions from the Middle East and internationally.

Once the trading in futures is stabilised, the DGCX will allow options trading on different commodities.





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