DIFX offers great opportunity for banks and brokers

Steffen Schubert, Chief Executive Officer of the Dubai International Financial Exchange (DIFX) told the audience: "There is a perception that the DIFX is only concerned with large scale trades from international institutional investors, and that it does not offer any opportunity for regional investors. This is simply untrue. It is a fantastic opportunity for your clients that is right here on your doorstep, and all of you can become involved."

Five international investment banks are already Members of the DIFX - Citigroup Global Markets, CSFB (Europe), Deutsche Bank, HSBC Bank and UBS. Regional firms that intend to become Members of the DIFX include Daman Securities, EFG Hermes, Global Investment House, SHUAA Capital, Dubai Bank and MashreqBank. Other banks and brokers can access the DIFX either through these existing Members, or by becoming a Member themselves, Schubert explained.

Schubert went on to explain how local firms can best proceed with their applications to become Members of the DIFX, as well as how to trade through existing Members.

The DIFX opened for business on September 26 and already has six products listed on it, including a US$741 million initial public offering of Global Depository Shares issued by the telecommunications company Investcom.

The exchange expects between 10 and 15 IPOs to list by the end of next year together with bonds, funds and Islamic products. It aims to be the first exchange in the Middle East to list derivatives.

Nasser Al Shaali, Chief Operating Officer of the DIFX, outlined the many advantages of taking part in the first truly international financial exchange in the region:

"Regional and international banks are attracted by the unique opportunities offered by the DIFX. It will be the only exchange in the Middle East to have market makers, which will encourage liquidity. It is also the only one to have a central counterparty clearing system, which guarantees that trades are honoured."