DFM settles first repo transactions
09 July 2018 Dubai
Image: Shutterstock
Dubai Financial Market has settled its first repo transactions.
The transactions included 45 million shares of Drake and Scull International and 6 million shares of Gulf Navigation.
According to DFM, it launched the new repo service to enable investors to unlock value of their DFM-listed securities, in a first step of its kind amongst regional markets.
The initiative means after a fixed period of time, a repo seller has the opportunity to repurchase the securities used as collateral from the buyer at a set price agreed upon at the beginning of the transaction.
Maryam Fikri, COO and head of clearing, settlement and depository division of DFM, said: 鈥淲e are very pleased with these first transactions as they reflect that DFM is on track in creating value for its investors in releasing values of their securities through an over-the-counter repo with a lending company, which may even lead to further improvement in trading activity.鈥�
He added: 鈥淲e hope financial institutions will leverage on this new DFM infrastructure to create new products.鈥�
The transactions included 45 million shares of Drake and Scull International and 6 million shares of Gulf Navigation.
According to DFM, it launched the new repo service to enable investors to unlock value of their DFM-listed securities, in a first step of its kind amongst regional markets.
The initiative means after a fixed period of time, a repo seller has the opportunity to repurchase the securities used as collateral from the buyer at a set price agreed upon at the beginning of the transaction.
Maryam Fikri, COO and head of clearing, settlement and depository division of DFM, said: 鈥淲e are very pleased with these first transactions as they reflect that DFM is on track in creating value for its investors in releasing values of their securities through an over-the-counter repo with a lending company, which may even lead to further improvement in trading activity.鈥�
He added: 鈥淲e hope financial institutions will leverage on this new DFM infrastructure to create new products.鈥�
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
