Dubai launches company to boost market maker business on DFM

Dubai is launching a company to organize and promote the business of market maker companies in the Dubai Financial Market to help the stock exchange attract more capital.

The company, called xCube, will develop and adopt algorithms and technology to perform market-making activities and high-frequency trading in cash equities and derivatives listed on local exchanges, the US media office said on Wednesday. United Arab Emirates in a statement.

Essa Kazim has been appointed chairman of xCube, while Arif Amiri, Saeed Al Awar, Hind bint Mohammed bin Kharbash and Jacques Visser will serve on its board of directors.

“Retail and institutional investors will benefit from the improved spreads and lower volatility that often results from market makers being active in the markets,” Kazim said.

“By bringing the latest technology and market making know-how to local markets, we anticipate renewed interest from investors, both locally and globally.”

The development comes as Dubai plans to list 10 government and state-owned companies on the DFM as part of a broader strategy to double the size of the financial market to 3 trillion dirhams ($816.7 billion).

Dubai also plans to launch two funds worth a total of 3 billion dirhams to boost trading in stock markets and encourage small and medium-sized businesses to list on its financial markets.

Emirates Central Cooling Systems Corporation, better known as Empower, along with government-owned utility company Dubai Water and Electricity Authority and Dubai Salik Road Toll System, are due to list on DFM within months. come. Tecom, the owner and operator of investment free zones in the emirate, will also be listed under plans revealed by officials last year.

Updated: January 26, 2022, 3:36 p.m.

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