The Dubai Financial Market (DFM) and SIX, the Swiss Financial Market Infrastructure Group, announced today the signing of a collaboration agreement during the second edition of the Capital Market Summit.
The partnership underscores a shared commitment to exploring and implementing collaborative initiatives “aimed at fostering mutual growth and innovation in the global financial landscape.”
Furthermore, the agreement includes participation “from the Dubai Central Securities Depository LLC (Dubai CSD) and Dubai Clear LLC under the umbrella of DFM.”
The collaboration focuses on “evaluating and implementing potential dual/cross-listing opportunities for products.”
The agreement looks to simplify the process “for investors to transfer shares between exchanges making cross listings easier and help with fungibility of shares, in addition to sharing best practices and market data.”
Moreover, this initiative aims to broaden market access and “bolster investment prospects for participants in both regions and markets.”
SIX and Dubai CSD will also work jointly “towards establishing Central Securities Depository (CSD) links to facilitate share fungibility and cross border transfers.”
The collaboration agreement was “signed during the Capital Market Summit, in the presence of Bjørn Sibbern, Global Head Exchanges and Member of the Executive Board of SIX, and Hamed Ali, CEO of DFM and Nasdaq Dubai.”
Hamed Ali, CEO of DFM and Nasdaq Dubai said:
“The strategic partnership between DFM and SIX exemplifies our shared commitment to driving innovation and fostering growth in the global financial landscape. Through collaborative initiatives, we aim to unlock new opportunities, enhance market efficiency, and strengthen ties between our vibrant financial ecosystems.”
Bjørn Sibbern, Global Head Exchanges and Member of the Executive Board of SIX said:
“SIX – already providing a very international environment and being home of many multinational companies – continuously strives to expand and improve its range of international products and services. With the collaboration with Dubai Financial Markets, we are excited to look at broadening the options of companies to raise capital and tap into additional, deep pools of capital as well as facilitating cross border transfers and share fungibility.”
In tandem, DFM and SIX will introduce companies and issuers “to the advantages of each market and provide them with access to growth opportunities and services.”
Additionally, the exchanges will collaborate “on identifying opportunities in areas such as market data and post-trade services, striving to drive innovation and foster market development.”
Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as “a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-compliant exchange globally since 2007.”
Following its initial public offering in November 2006, when DFM “offered 1.6 billion shares, representing 20 per cent of its paid-up capital of AED 8 billion, DFM became a public joint stock company, and its shares were listed on 7 March 2007 with the trading symbol (DFM).”
Following the IPO, the Government of Dubai “retained the remaining 80 per cent of DFM Company through Borse Dubai Limited.”
