Nasdaq and Borse Dubai have signed an agreement to bolster the technological infrastructure of Dubai’s stock exchanges, Dubai Financial Market (DFM) and Nasdaq Dubai, and improve post-trade practices.
DFM has been a Nasdaq Market Technology client since its inception in 2000.
Under the agreement with Borse Dubai, the parent company of DFM, Nasdaq will deliver a new INET-powered, multi-asset trading technology engine (Nasdaq Matching Engine), a cash equities clearing module (Nasdaq Packaged Clearing) and enable an in-memory-vetting model on the central securities depository (CSD) solution, which will increase performance, speed and resiliency, all under the new Nasdaq Financial Framework architecture.
This infrastructure renovation is expected to be completed by early 2019 and will pave the way for various enhancements in DFM, including central counterparty (CCP) clearing.
"Since its inception, Borse Dubai has always been committed to employ the most advanced technologies of financial markets, which positioned DFM at the forefront of the regional exchanges and further strengthened Dubai's leading position as an international capital markets hub," says Essa Kazim (pictured), chairman, Borse Dubai. "We are delighted to collaborate with Nasdaq to implement this comprehensive system overhaul that will provide our market participants with a cutting-edge infrastructure and enables us to introduce numerous financial instruments and products through an efficient and highly advanced platform."
The technology overhaul will support Borse Dubai's growth focus, including enhancing its post-trade services, boost efforts to attract domestic and international capital, and run cutting-edge technology based on international standards and best practices under local environment.
This move also positively impacts Nasdaq Dubai, as most of the trading and post-trading functionalities of Nasdaq Dubai are executed through the common technology platform that it shares with DFM.
Hamed Ali, chief executive of Nasdaq Dubai, says: "Nasdaq's technology infrastructure has played a key role in enabling the success of Nasdaq Dubai so far, including our equities and equity futures markets and CCP activities. We look forward to further expanding our product offerings, markets and other services backed by Nasdaq's efficient and effective technology enhancements."
"We are honoured to support Borse Dubai as they move to strengthen their market infrastructure with next generation trading and post-trade technology," says James Martin, regional manager, EMEA, market technology, Nasdaq. "As Dubai continues to strengthen itself as a major international financial centre, it requires transforming how its markets operate and perform to meet and exceed international standards under local market conditions, especially in the area of risk management and clearing. This new technology vision by Borse Dubai will give a clear signal to the world's capital markets that Dubai is dedicated to take their markets to the next level."
"DFM is committed to investing in its infrastructure as part of its drive to provide innovative services to various market participants," says Hassan Al Serkal, chief operating officer and head of operations division, DFM. "Empowering DFM with cutting-edge technologies massively strengthens its competitiveness in terms of speed, capacity, flexibility and expandability of the trading engine as well as achieving the highest levels of efficiency for post-trade services. We look forward to accomplishing this significant technology overhaul in cooperation with Nasdaq, the long standing technology partner of DFM, in order to ensure market infrastructure's full readiness for a new era of sustainable growth and further fortify DFM's position as the market of choice for issuers and investors in the region."