Source: Emirates Securities and Commodities Authority
Shaikha Lubna Al Qasimi, Minister of Economy and Chairperson of the Emirates Securities and Commodities Authority (Esca), yesterday issued her decision on online shares transaction.
This decision will be effective after 120 days from the date of publishing in official gazette.
As per this decision, a customer can directly send orders on buying or selling securities to the electronic transaction system at the shares market, through the Internet. It stipulates that interested brokers will get a licence from the authority in accordance with conditions, regulations and procedures stated in the decision and as per technical requirements set by the financial markets.
The decision specified that a broker should have certified technical and administrative abilities to offer online service. They should have qualified technical cadres in fields of network operation system, communications system, database system and information system security. It stated that initial approval of model transaction agreement online by the Esca is required. This agreement should include all information and data. The authority is entitled to require any amendment it deems necessary. The decision reiterated that a customer should be aware about risks and losses that he could incur through online share trading as processing of commands would sometimes not take place immediately.