Dubai – Mubasher: The Dubai Financial Market (DFM) on Monday announced that Al Ramz Capital, a subsidiary of Al Ramz Corporation Investment and Development, has become the first member to provide the regulated short selling (RSS) Service to its client base via the Dubai bourse.
The recently launched RSS service comes as part of the DFM’s efforts to provide market participants with new tools to support and bolster their trading activities and to help them better utilise their resources, as well as increase market liquidity.
RSS enables investors to short securities listed on the DFM by “selling borrowed shares with a commitment to return to the lender based on the mutually signed agreement,” the DFM revealed in a statement.
In order to implement the RSS, a brokerage must first “ensure that the borrowed securities are located on the client’s account prior to placing a short selling order, with exception of DvP clients, as a lending confirmation is sufficient to proceed with the order,” the DFM added.
Commenting on the announcement, DFM chief operating officer (COO) and head of operations Hassan Al Serkal said that the bourse was “delighted” to name Al Ramz Capital as the first RSS service provider.
The DFM recently released a list of 19 securities eligible to trade under the RSS service based on bourse’s semiannual review of January 2018.
The DFM is also currently “processing licence requests from number of brokerage firms that will provide this service once receiving the approval and completing the technical testing,” the DFM concluded.
