MARKET INFORMATION
Nasdaq Dubai
http://www.nasdaqdubai.ae/

 

Trading Hours

Pre-opening session

09:30 – 10:00

Continuous Trading

10:00 – 14:45

Closing auction

14:45 – 15:00

Time Zone

GMT+4

Trading Days

Monday – Friday

Trading Currency

USD and UAE Dirham (AED)

Main Index

No Index for Nasdaq names only

Exchange Code

Reuters code

DU

Bloomberg code

DU

Trading ID/ Trading Requirements

Same National Investor Number (NIN) used for trading DFM or the investor’s Clearstream. (Euroclear settlement will not be allowed on Nasdaq platform, effective 27th of Febuary).

 

 

 

 

Derivative Mechanism

Single Stock Futures are available on liquid DFM/ADX/NASDAQ Dubai listings.

Custody needs to be maintained at domestic broker level in order to engage

Index futures on the cusp of introduction at the time of going to print. Initially contract will be offered on DFMGI & ADSMI indices with a view to introducing contracts on MSCI UAE index subsequently.

Rather than requesting domestic broker custody NASDAQ Dubai will act as its own clearing agent to facilitate DVP clients.

Settlement Cycle

T+2. Sunday is considered a settlement holiday

Current Index Status

MSCI EM - FTSE EM

Market Cap

USD5.4 bn
Average Daily Value Traded
YearAVG VALUE TRADED
2020 $6.3mn
2021 $0.12mn
MARKET DYNAMICS

Stock Limit
Up/Down

Trading limits differ between individual listed stocks according to their price range

Price Range

Trading Safeguard Up & down

From

To

Below USD 0.10

50%

USD 0.10 - 0.249

20%

USD 0.250 - 0.499

15%

USD 0.50 & above

10%

Tick Size

USD Price Range

Tick Size

Below USD 2.00

USD 0.001

USD 2.00 - 9.995

USD 0.005

Above 10.00

USD 0.010

AED Price Range

Tick Size

Below AED1

AED 0.001

Above AED1

AED 0.01

Off- Market
Crosses

 

There is a market for block trades with the following criteria *Value of the trade should at least USD 750,000 each leg *Market authority approval is required prior to trading *Same trading hours as the regular market

Official Closing Price

Matched price in the closing auction or the last traded price prior to the auction in case no matching occurred in the auction.

Board Lot

No board lots

Closing
Auction

Its a 15 mins auction.
- from 14:45 - 14:53: adding, amending and canceling are possible
- from 13:53 - 13:55: no amendments/ cancellations, can only improve
- from 14:55 - 15:00: Trading at last

Crosses

Crossing can be done in market spread during the regular trading hours.

Iceberg
Orders

Not available

MARKET REGULATIONS
Foreign Ownership Restriction
Foreign investors may own up to 100% of any stock except for DEPA and REIT where foreigners may only own 49%.

Non GCC investors can own up to 49% of REIT.
Disclosure Rules
Disclosure must be made upon acquiring or ceasing to hold ownership carrying more than 5% of the voting rights of a listed company and upon an increase or decrease of at least 1% of the level of interest previously reported. In case the investor is a board member or senior management, then a disclosure is required for any transaction in the listed company’s shares
Securities Lending
Permitted
Short selling
Permitted, but there must be pre-validation for sell orders. Short selling is only allowed for
market makers
Crossing Restrictions
Same nin crossing is available.
Timeline for New NIN Setup
Takes 10 minutes to setup.
Client Account Structure
A dual account structure is standard in DFM. At the custodian each NIN will
have a Registry Account and a Trading Account

Clients have the option of maintaining their inventory either in their Registry
Accounts or their trading Accounts

Pre-validation must take place prior to the execution of sales – i.e. availability in
the trading account must be confirmed pre-trade

If shares are not available in the trading account they must be transferred.
Clients can either instruct their global custodians to undertake the transfer or a
more expeditious option is to authorize a local/International broker to do so on
their behalf (stock transfer should take no longer than 45 minutes).
Failing Trades
Sales:
• incase the trade got executed on a DFM nin number, then it will be subject to
a buy-in if it fails to settle by 1pm (local time) on T+4.
• incase the trade was on executed on Euroclear or Clearstream nin number
and missing clients instructions, the trade will be irrevocable rejected and cancelled on T+2

Purchases: subject to a sell-out if trade fails to settle by 1pm (local time) on T +4

Late settlement fees waived on T+3, USD 700 OR 25BPS whichever is higher on T+4

Sell-outs take place on the normal market screens

Buy-ins take place on a separate platform which is open from 15:30-15:45.

Bids will be placed and any sellers may offer blind at any price.

Settlement of any sale in the buy-in market takes place on a T+1 basis.
MARKET FEES & TAXES
Market Fees 10.00bps
(breakdown is available)
VAT Applicable on both market fees and broker commissions.
Currently levy 5%
Withholding Tax None
Capital Gain Tax None
Dividend Tax None