Dubai launches ‘xCube’ to boost business of market makers

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Governor of Dubai, Deputy Prime Minister and Minister of Finance, announced the launch of the company “xCube” to organize and facilitate the activities of market maker companies in the financial market from Dubai.

The step is part of the Dubai Securities and Exchange Higher Committee’s strategy to increase the size of the emirate’s stock market to AED3 trillion ($816 billion) in the coming period.

Sheikh Maktoum has appointed Essa Kazim as Chairman of the Board of xCube. Arif Amiri, Saeed al-Awar, Hind bint Kharbash and Jacques Visser were appointed council members.

XCube aims to develop and adopt state-of-the-art algorithms and technologies to perform market-making activities and high-frequency trading in spot equities and derivatives listed on local exchanges.

Kazim, who is also the governor of the Dubai International Financial Centre, said both retail and institutional investors will benefit from the improved pricing margins and lower volatility that often results from market makers being active in the markets. .

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

xCube aims to enhance the competitiveness of Dubai’s financial markets and attract more local and foreign capital and investors.

The market maker fund also seeks to invest in promising stocks and hedge risk, which in turn leads to building investor confidence and creating a more buoyant stock market.

In late 2021, a committee overseeing stock market development said Dubai plans to launch two funds worth a total of AED3 billion ($816 million) to boost trading in stock markets and encourage investors. small and medium-sized enterprises to register on its financial markets.

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