The Securities and Commodities Authority (SCA) in the United Arab Emirates (UAE) securities regulator has published draft legislation on market making, securities lending and borrowing, short-selling and liquidity providers.
The move is intended to bring liquidity back to the region, whose stock exchange has seen a mass exodus of investors since the global financial crisis. The MSCI is also said to be in favor of markets that are actively engaged in securities lending and short-selling when considering whether to welcome them into the emerging markets index.
The SCA is asking for feedback to the legislation by November 17 2011.
(JDC)