Dubai’s financial regulator has agreed to share
data on centrally cleared transactions with European securities
The deal, signed this week, paves the way for Dubai-based
central counterparties (CCPs) to provide services to EU-based
clearing members and trading venues.
Other markets, including South Korea, Mexico, Switzerland,
Australia and the US, have signed similar deals
with bureaucrats in Brussels.
European rules on derivatives, collectively known as EMIR,
are forcing over-the-counter (OTC) contracts to be cleared
through CCPs to mitigate risk.
Dubai Financial Market (DFM), the Gulf's only listed-stock
exchange, already offers a CCP service for derivatives trading
on its subsidiary Nasdaq Dubai.
It plans to introduce CCP clearing for equities in 2019
after signing a deal with Nasdaq recently
to revamp its post-trade platforms.
Last September European officials decided that the Dubai's
regulatory framework for CCPs should be deemed equivalent to
that of the EU.
The framework, built by Dubai's regulator DFSA, is
also compliant with the international standards set out by
Ian Johnston, DFSA's chief executive, said that the group
will cooperate and to assist fellow regulators, "particularly
where the DIFIC firms have strong links with the European Union
US and Hong Kong securities regulators
agreed to strengthen cross-border ties in January.
Both parties signed specific cooperation terms for
supervising and sharing information on exchanges, brokers,
investment funds and clearing agencies.
SFC already has similar accords in place with