The regulator of DIFC has not yet received any information with regard to the reported second-tier exchange the centre is planning to host for the emirate's smaller enterprises.
“So far we don’t have any information on the details,” Gerald Santing, Managing Director, Markets at Dubai Financial Services Authority, said. “It’s a normal procedure that if a body would wants to start an exchange here in the DIFC we would have to look at their application. And we’ll do that in a normal and professional way”.
Santing, who joined the DFSA in June 2010, has the overall responsibility for the DFSA’s regulation of Nasdaq Dubai, the Dubai Mercantile Exchange and other future exchanges that may receive authorisation to operate within the DIFC.
The former managing director of the Netherlands Authority for the Financial Markets however sees a second-tier exchange would be good if there is a market for it. “The AIM is a good example of an exchange where there are different standards catering to the smaller firms. If there is a market here for you to do that, then why not?” he said.
On July 20, Nasser Saidi, DIFC Chief Economist said plans were afoot to launch an alternate market catering to small and medium-sized enterprises (SMEs), a move away from the high-profile and high-value listings that dominate Dubai's existing capital markets.
Saidi said the regional private equity industry needed a second-tier market with less stringent requirements where smaller companies with revenue of $20 million to $80m could be listed.
Emirates Business
