UAE to tighten up on trading
07 July 2014 Dubai
Image: Shutterstock
A review and amendment of the regulations regarding lending by banks operating in the United Arab Emirates (UAE) has been agreed upon at a meeting comprising the state’s regulatory bodies.
The meeting has been seen as a reaction to Dubai-listed construction firm Arabtec triggering a market crash following over-zealous trading.
The establishment of a permanent technical committee made up of representatives from the Securities & Commodities Authority (SCA), the Central Bank, Abu Dhabi Securities Market and Dubai Financial Market, was also agreed.
The committee’s main functions will be; to follow up transactions which impact markets to ensure soundness and integrity of trading, and ensure absence of any suspicion of manipulation of securities’ price; to monitor statements of CEOs and securities analysts to ensure that they are transparent and truthful; and to review sharp market movements and submit recommendations.
The performance of financial markets in the UAE was reviewed during the meeting, together with the pricing volatility recently witnessed in its indices.
The meeting, which took place in Abu Dhabi, was attended by Sultan Bin Saeed Al Mansouri, minister of economy and SCA board chairman, Sultan Bin Nasser Al Suwaidi, governor of the central bank of the UAE, and chairman of the Dubai financial market, Essa Kazim, among others.
Reports prepared by the technical teams formed by the SCA and the Central Bank, on markets trading, were also reviewed during the meeting.
The meeting has been seen as a reaction to Dubai-listed construction firm Arabtec triggering a market crash following over-zealous trading.
The establishment of a permanent technical committee made up of representatives from the Securities & Commodities Authority (SCA), the Central Bank, Abu Dhabi Securities Market and Dubai Financial Market, was also agreed.
The committee’s main functions will be; to follow up transactions which impact markets to ensure soundness and integrity of trading, and ensure absence of any suspicion of manipulation of securities’ price; to monitor statements of CEOs and securities analysts to ensure that they are transparent and truthful; and to review sharp market movements and submit recommendations.
The performance of financial markets in the UAE was reviewed during the meeting, together with the pricing volatility recently witnessed in its indices.
The meeting, which took place in Abu Dhabi, was attended by Sultan Bin Saeed Al Mansouri, minister of economy and SCA board chairman, Sultan Bin Nasser Al Suwaidi, governor of the central bank of the UAE, and chairman of the Dubai financial market, Essa Kazim, among others.
Reports prepared by the technical teams formed by the SCA and the Central Bank, on markets trading, were also reviewed during the meeting.
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