Dubai capital market planning new measures to boost liquidity
Losses at the Dubai Financial Market (DFM) fell to AED1.7m ($0.46m) in the third quarter of the year, from AED9.3m in the same period of last year.
The company said that while expenses fell to AED38.5m from AED41m, revenues increased to AED36.8m from AED31.7m during the third quarter. The value of shares traded on the DFM during the third quarter fell 9.9 per cent to AED8.1bn.
For the first nine months of the year profit rose by 411 per cent to AED38.9m and the value of shares traded rose 46.6 per cent to AED40.4bn.
The DFM also said that it was in the process of preparing for the introduction a raft of new measures to boost liquidity on the exchange. These include market making – where a broker offers both a buy and sale price of shares; securities lending and borrowing – where owners of a security lend their investments to another investor; short selling – where investors borrow securities to bet on share prices falling; and liquidity providing.
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