The Dubai International Financial Exchange (DIFX) plans to introduce a new platform for trading its securities on 4 July.
The trading platform, supplied by NASDAQ OMX, will be used for all trades on the DIFX including equity derivatives, which the DIFX plans to list for the first time later in 2008 (subject to regulatory approval).
“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,” says Peter FitzGerald, COO of the DIFX. “Derivatives are a key part of our growth strategy to offer new opportunities to investors. Our switch to the new platform also marks a significant step in the integration of the global capital markets, by strengthening the DIFXs links with NASDAQ OMX.”
NASDAQ OMX bought a one-third stake in the DIFX in February 2008. The other two-thirds are owned by Borse Dubai, which is a shareholder in NASDAQ OMX.
“The DIFX will deploy a trading engine with capacity and functionality advantages that enables them to drive liquidity, and introduce new products and services at their exchange,” says Markus Gerdien, executive vice president at NASDAQ OMX. “NASDAQ OMX is delighted to be the technology provider for the DIFX enabling them to better serve both regional and international customers. This announcement further supports the development of the DIFX as a financial center in the Middle East.”
The NASDAQ OMX platform will exclusively handle all trades in DIFX securities, including its listed equities and structured products.
The DIFXs plans to list derivatives including futures and options on equities that are listed on the exchange, as well as on the Dubai Financial Market and the Abu Dhabi Securities Exchange. The DIFX also plans to list futures contracts based on the FTSE DIFX UAE 20 equity index.