Dutch regulator allows direct access to Dubai International Financial Exchange

Source: Dubai International Financial Exchange

The financial services regulator in the Netherlands has agreed to allow brokers there to connect directly to the Dubai International Financial Exchange (DIFX) and trade securities, in a decision that strengthens the international links of the exchange.

The decision by the Netherlands Authority for the Financial Markets (AFM), in conjunction with the Netherlands Finance Ministry, creates a new route for brokers to join the DIFX as a Member. Previously Members needed to be located either inside the Dubai International Financial Centre (DIFC), or in certain other European locations.

Brokers based anywhere may also trade on the DIFX, through a relationship with a Member.

Per E. Larsson, Chief Executive of the DIFX, said: "Brokers in the Netherlands have expressed an interest in trading directly on the DIFX to meet investor demand as the range of securities on the exchange grows. The decision by the AFM underlines the international quality of the legal, regulatory and supervisory standards that govern trading on the DIFX, the region's international exchange.

"The DIFX is also in discussion with financial regulators in a number of European and other countries, as demand for direct access by brokers increases. The DIFX is steadily expanding its international links with regulators, brokers and investors."

The DIFX will provide the AFM with information regarding which Netherlands brokers join the exchange, the functioning of the DIFX market, any breaches of DIFX rules, and trading volumes.

Hamed Ali, Executive Officer of the DIFX, said: "The DIFX's relationship with the AFM is a further step towards creating a thriving trading environment in an attractive range of securities, for the benefit of wholesale and retail investors. As the DIFX prepares for new listings of securities in 2007, its technological and regulatory connections with the financial services community are rapidly strengthening."

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