DFM settles first repo transactions
09 July 2018 Dubai
Image: Shutterstock
Dubai Financial Market has settled its first repo transactions.
The transactions included 45 million shares of Drake and Scull International and 6 million shares of Gulf Navigation.
According to DFM, it launched the new repo service to enable investors to unlock value of their DFM-listed securities, in a first step of its kind amongst regional markets.
The initiative means after a fixed period of time, a repo seller has the opportunity to repurchase the securities used as collateral from the buyer at a set price agreed upon at the beginning of the transaction.
Maryam Fikri, COO and head of clearing, settlement and depository division of DFM, said: “We are very pleased with these first transactions as they reflect that DFM is on track in creating value for its investors in releasing values of their securities through an over-the-counter repo with a lending company, which may even lead to further improvement in trading activity.”
He added: “We hope financial institutions will leverage on this new DFM infrastructure to create new products.”
The transactions included 45 million shares of Drake and Scull International and 6 million shares of Gulf Navigation.
According to DFM, it launched the new repo service to enable investors to unlock value of their DFM-listed securities, in a first step of its kind amongst regional markets.
The initiative means after a fixed period of time, a repo seller has the opportunity to repurchase the securities used as collateral from the buyer at a set price agreed upon at the beginning of the transaction.
Maryam Fikri, COO and head of clearing, settlement and depository division of DFM, said: “We are very pleased with these first transactions as they reflect that DFM is on track in creating value for its investors in releasing values of their securities through an over-the-counter repo with a lending company, which may even lead to further improvement in trading activity.”
He added: “We hope financial institutions will leverage on this new DFM infrastructure to create new products.”
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