12 February 2018
Reporter: Jenna Lomax

DFM admits Al Ramz Capital as the first regulated short-selling provider

Al Ramz Capital has become the first member of the Dubai Financial Market (DFM) to be given a DFM accreditation to provide a regulated short selling (RSS) service to its client base.

The DFM launched the RSS service back in December after it was given approval by the Securities and Commodities Authority.

The RSS service enables investors to short-sell securities listed on DFM through selling borrowed shares with a commitment to return to the lender based on the mutually signed agreement.

Essentially, investors will be allowed to sell stocks that are not theirs to gain surplus if prices have dropped when trades are settled.

To implement RSS, the brokerage firm has to ensure that the borrowed securities are located on the client’s account prior to placing a short selling order.

According to DFM, the move is part of DFM’s efforts to provide market participants with new tools to strengthen their trading activities, better utilise their resources, and further enhance market liquidity.

The DFM has recently released a list of 19 securities eligible for trading as part of the RSS Service based on the semi-annual review of January 2018.

Every six months a list of potential DFM-listed securities will be reviewed in compliance with international recommendations—the list will also include exchange traded funds.

Hassan Al Serkal, COO and head of operations division at DFM, said: “We are delighted to announce that Al Ramz Capital received the first of its kind license to provide the RSS service. The company is amongst the leading brokerage firms that rapidly embrace DFM’s development initiatives providing diversified and ad advanced services to our market participants.”

Ayman Ghoneim, COO of Al-Ramz Capital, commented: “Short selling aims to increase the level of liquidity and will contribute to increasing volumes and trading values.”

He added: “This mechanism will create a buyer at each point, which will result in enhancing investment opportunities and creating better risk management environment and the possibility of making profits from stock markets in the event of a downturn.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BoE release consultation on a new rule for central counterparties
16 February 2018 | London | Reporter: Jenna Lomax
BoE states that this proposed rule of written notice would “support the UK Government’s approach to the implementation of the EU Network and Information Systems Directive”
ASX sees 5.8 percent increase in collateral management activity
16 February 2018 | Sydney | Reporter: Jenna Lomax
The increase in the use of derivatives and OTC was due to a rise in futures trading, OTC clearing and collateral management activity
SBL Network bolsters its P2P securities lending team
16 February 2018 | London | Reporter: Jenna Lomax
SBL Network Limited has hired Charlotte Clout, reporting to Tammy Phillips, CEO at SBL
Citi’s agency lending sales chief departs
16 February 2018 | New York | Reporter: Drew Nicol
Citi’s Americas head of sales for it’s agency securities lending, collateral management, and separate account cash management businesses, Jeff Bonaldi, has left to pursue a number of entrepreneurial ventures
SIFMA testifies on legislative proposals regarding derivatives
15 February 2018 | Washington DC | Reporter: Brian Bollen
SIFMA has testified to the US House of Representatives Committee on Financial Services Subcommittee on areas that could make regulations more risk-sensitive, less complex and clearer
More than 35 percent of investors asked are planning to add to their European exposure in 2018
ECB rings collateral changes
14 February 2018 | Frankfurt | Reporter: Brian Bollen
The European Central Bank has issued a series of amendments relating to the Eurosystem’s monetary policy implementation