By: Mahmoud Gamal

Dubai – Mubasher: Al Safwa Mubasher Financial Services is seeking to get the official approvals to launch short-selling service on the Dubai Financial Market (DFM) within the second quarter of 2018, company CEO Ehab Rashad told Mubasher.

This came after the financial and brokerage services provider offered this service in the Abu Dhabi Securities Market (ADX) last October, Rashad noted.

Given that the ADX had announced it started to offer short-selling services last October in a bid to boost liquidity and attract more foreign investors.

The CEO added that Al Safwa Mubasher was also activating the short-selling services for their clients in the US stock market last week.

Lending and borrowing

The UAE-listed firm has revealed that it obtained a licence for lending and borrowing securities from the DFM.

The licence is a service that aims at reinforcing the stock market efficiency and liquidity in a bid to put a lid on fluctuations, Rashad said.

Lending and borrowing securities will give investors the opportunity to transfer stocks’ ownership from lender to borrower, in addition to giving the borrower some rights, including selling or lending stocks and attending ordinary general meetings (OGMs), he highlighted.

Translated by: Mai Ezz El-Din