22 Dec, 2009NASDAQ Dubai welcomes its planned acquisition by Dubai Financial Market

NASDAQ Dubai welcomes the announcement made today by Dubai Financial Market (DFM), by which DFM has made an offer to acquire NASDAQ Dubai, subject to regulatory approvals. Under the new ownership structure, DFM and NASDAQ Dubai will develop closer operational links.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: "The new ownership structure will create a dynamic new force in the region's capital markets, by combining the regional and international strengths of the DFM and NASDAQ Dubai. Collaboration between the two exchanges will increase, promoting higher liquidity and more listings on both of them.

This new structure will help NASDAQ Dubai and DFM attract more issuers from across the region and beyond, strengthening Dubai's role as a centre of capital markets growth and innovation. Issuers can choose which exchange to list on according to their commercial and regulatory needs."

NASDAQ Dubai and DFM will work towards consolidating some of their key back office functions, including custody and clearing. This will promote easy access to both exchanges by regional and international investors, who will be able to trade seamlessly on each in exactly the same way as well as driving cost efficiency for the two exchanges. ,.

NASDAQ Dubai will continue to be regulated to international standards by the Dubai Financial Services Authority (DFSA). The exchange will retain its legal personality as a limited company, together with its own Board of Directors and Chief Executive.

Mr Singer said: The two exchanges will move closer together in ways that benefit both, while retaining their separate strengths, such as regulation, where appropriate .

Both the ownership and operational consolidation plans have been carefully prepared to benefit the current and potential market participants of NASDAQ Dubai and DFM, including investors, issuers and brokers. It is by putting their interests first that Dubai will achieve its goal of creating a powerful capital markets hub for the GCC and wider Middle East.

The planned new ownership structure announced today and the planned operational consolidation are subject to regulatory approval by the DFSA and by the UAE's Securities and Commodities Authority (SCA), which is the regulator of the DFM.

Further details of the transaction will be announced in due course.

NASDAQ Dubai s reported equity trading volumes rose 20% in the first 11 months of 2009 from the same period last year, to 2.68 billion shares. The exchange introduced compulsory reporting of over the counter trades in September 2008. Trading on its equity derivatives market, launched in November 2008, has expanded quickly in 2009, with more than 110,000 derivatives traded. NASDAQ Dubai has one of the world s largest listed Sukuk markets, with a total nominal value of $17.3 billion.