18 Nov, 2008Union Brokerage Company becomes first regional general clearing member of DIFX

Union Brokerage Company (UBC), the brokerage subsidiary of Union National Bank (UNB), has become the first brokerage house from the region to be awarded recognition by the Dubai International Financial Exchange (DIFX) as a General Clearing Member.

Becoming a General Clearing Member will enable UBC to not only provide all its customers with access to trades on the DIFX without the need for an intermediary, but also to provide Clearing services to other DIFX Trading Members.

UBC, which is regulated by the Securities and Commodities Authority, is also the second broker to join the DIFX as a Member directly from the regulatory jurisdiction of the UAE.

The other General Clearing Members of the DIFX are Merrill Lynch, KAS Bank and Deutsche Bank and are all based outside the region.

Mohammad Nasr Abdeen, Chief Executive Officer of UNB said: "UBC will serve as a new route for investors from the UAE, the region and the international investor community to access the growing range of listings on the DIFX".

Mr. Abdeen added: "It is extremely gratifying to be the first brokerage company from the entire region to be recognised as a General Clearing Member on the DIFX. The DIFX operates to an international regulatory standard and we are pleased to have satisfied them of our own high levels of professionalism and standards of operations and service."

Currently the DIFX has 18 listed equities including DP World, which carried out the largest IPO in the Middle East last year ($4.96 billion). The exchange's equity base includes listed companies from Australia, Bahrain, Canada, China, India, Switzerland, the United Kingdom and United States as well as the UAE.

Jeffrey Singer, Chief Executive of the DIFX, said: "UBC has a long established track record in the UAE and is one of its leading brokers, linking various individual and institutional investors to the DIFX and its services. We are delighted that it is the first local broker to sign up as a General Clearing Member. Joining from the UAE provides simple and straightforward access to the DIFX market."

In February this year Nasdaq OMX, one of the world's leading exchange groups, acquired one third of the DIFX. The other two thirds is owned by Borse Dubai. This ownership structure supports the expansion of the DIFX as the international stock exchange serving the region between Western Europe and East Asia.

Union Brokerage Company, one of the longest established brokerage houses in the country, operates out of 7 offices across the UAE and is currently evaluating plans for regional expansion and increasing product and service offerings.

Mr. Abdeen added that: "We recognise our responsibility to investors from the UAE, the region and the international community to support their capital market trading and investing needs and we intend to expand our presence and service offerings in the region to satisfy these investor appetites".