The Emirates Securities and Commodities Authority (SCA) plans to introduce a set of rules by the end of the year aimed at tightening the regulation of financial markets.
The rules will cover trading on margins, market making and short selling.
"We'll introduce it as a package to the market," said Ibrahim al Zaabi, the deputy chief executive at SCA.
Margin trading is trading with borrowed money in an account set aside for the purpose. Typically, an account holder puts money in the account and is then allowed to trade with a sum in excess of that deposit.
But should the value of a trader's portfolio dip below pre-set limits, the broker controlling the account can make a "margin call", requiring the account holder to provide more cash.
A market maker is a broker-dealer who balances supply and demand for shares by serving as a matchmaker between buyers and sellers.
Short selling is selling borrowed shares in the hope of buying them back later at a lower price, returning them to the original owner and keeping the difference.
At the moment, leveraged trading is available from brokers but is still unregulated, which has led to warnings to refrain from the practice until it is allowed by market rules.
"We're discussing with the market to see the mechanism so that the tools are available at the market," Mr al Zaabi said.
Once the talks are complete, the SCA will raise the proposals to its board, Mr al Zaabi said.
He said the regulations were expected to be ready by the end of the year.
"Our markets are plain vanilla markets," said Fadi al Said, a senior fund manager at ING Investments. "In other words, investors can make basic trades, buy or sell.
"It is positive whenever you enhance the reach of regulations; of course, the sooner the better. When you have a robust and strong, well-regulated market, it increases the trust of local and foreign investors.
"This is a natural progression. Any market that wants to be represented on the maps of investors and wants to be an international market needs to work on the infrastructure of regulations."
halsayegh@thenational.ae
UAE currency: the story behind the money in your pockets
Tales of Yusuf Tadros
Adel Esmat (translated by Mandy McClure)
Hoopoe
RESULT
Arsenal 0 Chelsea 3
Chelsea: Willian (40'), Batshuayi (42', 49')
Young women have more “financial grit”, but fall behind on investing
In an October survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus. 58 per cent). They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all these good ‘first’ measures, they are investing and saving less than young men – falling early into the financial gender gap.
While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a nearly 60 per cent difference.
In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (though most young adults do not invest at all).
“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”
Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.
"Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap," she said. "Teach kids about the importance of investing – especially girls, who as we see in this study, aren’t investing as much. Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently."
23-man shortlist for next six Hall of Fame inductees
Tony Adams, David Beckham, Dennis Bergkamp, Sol Campbell, Eric Cantona, Andrew Cole, Ashley Cole, Didier Drogba, Les Ferdinand, Rio Ferdinand, Robbie Fowler, Steven Gerrard, Roy Keane, Frank Lampard, Matt Le Tissier, Michael Owen, Peter Schmeichel, Paul Scholes, John Terry, Robin van Persie, Nemanja Vidic, Patrick Viera, Ian Wright.
UAE currency: the story behind the money in your pockets
List of officials:
Referees: Chris Broad, David Boon, Jeff Crowe, Andy Pycroft, Ranjan Madugalle and Richie Richardson.
Umpires: Aleem Dar, Kumara Dharmasena, Marais Erasmus, Chris Gaffaney, Ian Gould, Richard Illingworth, Richard Kettleborough, Nigel Llong, Bruce Oxenford, Ruchira Palliyaguruge, Sundaram Ravi, Paul Reiffel, Rod Tucker, Michael Gough, Joel Wilson and Paul Wilson.
Who is Allegra Stratton?
- Previously worked at The Guardian, BBC’s Newsnight programme and ITV News
- Took up a public relations role for Chancellor Rishi Sunak in April 2020
- In October 2020 she was hired to lead No 10’s planned daily televised press briefings
- The idea was later scrapped and she was appointed spokeswoman for Cop26
- Ms Stratton, 41, is married to James Forsyth, the political editor of The Spectator
- She has strong connections to the Conservative establishment
- Mr Sunak served as best man at her 2011 wedding to Mr Forsyth
KILLING OF QASSEM SULEIMANI
What is a black hole?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
