Dubai International Financial Exchange (DIFX) has confirmed
that it will switch its trading platform to Nasdaq OMX ready
for the imminent derivatives launch. The move away from Atos
Euronext comes after the announcement by NYSE Euronext that it
has reached a deal with Doha Securities Market, which will see
the launch of a rival Middle Eastern derivatives exchange.
"Nasdaq OMX will provide us with a proven world-class
trading platform that will help to drive the expansion of the
DIFX as the international exchange serving the Middle East.
Derivatives are a key part of our growth strategy to offer new
opportunities to investors," says Peter FitzGerald, chief
operating officer of the DIFX.
DIFX has re-confirmed that it will launch equity derivatives
once it receives regulatory approval, expected to be in the
third quarter. The exchange will launch contracts linked to the
FTSE UAE index, as well as common stocks, such as DP World, in
its suite of equity derivatives.
Competition is hotting up after a deal between NYSE Euronext
and Doha Securities Market. The strategic partnership with the
Middle East equity exchange will see Qatar build a new
derivatives and cash exchange.
The transaction, whereby NYSE Euronext bought a 25% stake in
Doha Securities Market for $250 million in cash, will
eventually see the development of a "new, internationally
integrated cash and derivatives exchange" in Doha with direct
links to "the know-how and technology skills of the
world’s largest capital markets", says the
However, an unnamed source connected to the DIFX stresses
his confidence that the exchange’s first-mover
advantage will prove critical.
"The launch of derivatives has been part of the
DIFX’s growth strategy in products, and
derivatives are next in line," says the source. "DIFX wants to
be the first Middle East exchange to offer equity derivatives
and, if other exchanges offer similar products, then they will
have to follow in its wake."
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |