Dubai – Mubasher: The Dubai Financial Market (DFM) on Monday revealed that EFG Hermes Brokerage received its accreditation to provide the allocation account service to its clients.
Upon the decision, the Arab world's leading brokerage house has become the first member approved by the DFM to receive the-first-of-its-kind licence, the Dubai bourse said in a statement.
Considering a pioneering step among regional stock markets, the new service comes in line with the DFM’s effort to enhance its business framework in an attempt to benefit various participants including issuers, investors and brokerage firms, it added.
“This step underlines that the company is rapidly [embracing the] DFM’s development initiatives, noting that this service is invaluable for its investor base in general and institutions in particular,” said Maryam Fikri, the chief operating officer (COO) of Clearing, Settlement and Depository Division (CSD).
The service will help the DFM diversify its products and services in line with the best practices worldwide, as well as boost its pioneering status among the regional peers in terms of luring international funds, Fikri, who doubles as head of CSD, added.
“Accordingly, the DFM has developed this unique mechanism for the first time to streamline international funds’ access to the market and further strengthen their activities,” he noted.
Under the new mechanism, the brokerage companies will be able to implement the clients' orders through this account and allocates the quantities to each investor's account based on the average price of the deals, the DFM highlighted.
Commenting on the decision, Julian Bruce, head of Brokerage, EFG Hermes Brokerage, said: “This is [a] significant development to attract institutional investors and a notable step in the market’s evolution.”
