On Wednesday, March 29, 2023, at 2:03 PM, the Dubai Financial Market (DFM) launched the “Omnibus Accounts” service. This service allows qualified dealers to access the investment opportunities available in the market by opening a unified account for holding securities. The account can be traded on behalf of several beneficial owners through a single investor number.
The Dubai Depositary Company, an affiliate of DFM, issued the rules governing the service of pooled trading accounts, which will come into force on the launch date. The registration process for qualified investment institutions interested in the new mechanism has already begun.
Hamed Ali, CEO of DFM and Nasdaq Dubai, stated that the pooled trading account service opening was a significant achievement that supports their endeavors to develop capital markets in Dubai. It enhances global investors’ access to the various opportunities available in the market and meets the standards set by international institutions.
Haneen Al Hammadi, General Manager of Dubai Depository Company, said that the service represents a significant step forward for a specific category of market dealers, especially asset management companies, as it helps them enhance operational efficiency and reduce costs.
Rocio Ekaj, Head of Securities Services at HSBC Bank, said that introducing pooled accounts allows greater participation by investors in the local markets. They will view the pooled account as an economical vehicle that is operational and cost-efficient when structuring the safe custody assets of securities.
The Securities and Commodities Authority published the rules governing pooled trading accounts, allowing central depository companies to introduce rules and procedures for pooled accounts. Asim Al-Khouli and Ramy Samih reported on this development.
Wednesday, March 29, 2023 – 2:03 PM
Dubai, March 29, WAM, The Dubai Financial Market announced today the launch of the “Omnibus Accounts” service, which opens the door for qualified dealers to access the investment opportunities available in the market for the benefit of more than one beneficiary owner, by opening a unified account for holding securities. and traded on behalf of several beneficial owners through a single investor number (NIN).
The Dubai Depositary Company, affiliated to the Dubai Financial Market, has issued the rules governing the service of pooled trading accounts, which will come into force as of Wednesday, March 29, 2023. At the same time, it has begun the process of registering qualified investment institutions interested in dealing through this new mechanism.
Hamed Ali, Chief Executive Officer of Dubai Financial Market and Nasdaq Dubai, said: “The launch of the pooled trading account service represents an important achievement that supports our endeavors to implement the strategy to develop capital markets in Dubai. It is a step that will enhance global investors’ access to the various opportunities available. In the market.. and meeting the requirements and standards of international institutions, including, for example, MSCI with regard to market access and market quality, FTSE for the quality of the market system, and other international index companies.
For her part, Haneen Al Hammadi, General Manager of the Dubai Depository Company, said: “Dubai Depository, as the first and only central depository services company in the UAE licensed by the Securities and Commodities Authority until today, has been keen to provide a regulatory framework that facilitates the implementation of this structure.” This is an important step in the financial markets in the country, in line with the best practices applied in the international markets.. The consolidated accounts service represents a major step forward for a specific category of market dealers, especially asset management companies, as it helps them to enhance the efficiency of operations and cost.”
Rocio Ekaj, Head of Securities Services, Middle East, North Africa (excluding Saudi Arabia) and UAE, HSBC Bank, said: “Introducing pooled accounts allows greater participation by investors in the local markets who will be able to view the pooled account as an economical vehicle that is operational and cost efficient when Structuring the safe custody assets of securities, especially as it reduces qualification requirements and maintenance expenses.
This announcement comes after the Securities and Commodities Authority published the rules governing pooled trading accounts, which allows central depository companies to introduce rules and procedures for pooled accounts.
Asim Al-Khouli / Ramy Samih
The launch of the “Omnibus Accounts” service marks an important milestone for Dubai’s capital market and provides an opportunity for more investors to access investment opportunities. The service allows for multiple beneficial owners to trade through a unified account, enhancing efficiency and reducing costs for asset management companies. The Dubai Financial Market and Nasdaq Dubai CEO, Hamed Ali, notes that this step aligns with global standards and will improve market access and quality. The Dubai Depository Company’s General Manager, Haneen Al Hammadi, adds that this move aligns with international best practices and represents a major step forward in financial markets. Overall, this development enhances Dubai’s position as a hub of global financial markets.