DUBAI Jan 3 Dubai Financial Market (DFM)
, the Gulf's only listed stock exchange, said on Tuesday
that it planned to introduce covered short-selling, a move that
could increase trading liquidity.
"DFM is planning implementation of regulated short-selling
on a selected list of eligible securities in accordance with
international recommendations under local market conditions in
the coming months, subject to regulatory approvals of its
rules," it said in a statement to Reuters.
The exchange has completed consultations on the operating
model and is now working on technical enhancements of its
planned short-selling system, it said.
Covered short-selling involves investors borrowing shares
and selling them in the hope of repurchasing them later at a
Regulators in the Gulf have until now shied away from the
practice because of concern that it could destabilise markets,
but some countries including Saudi Arabia and Qatar have said
they plan to introduce it.
Abu Dhabi Securities Exchange Chief Executive Abdullah
al-Blooshi said last week that the bourse would introduce
covered short-selling in the first quarter of 2017.
He said the exchange was acting after the United Arab
Emirates market regulator approved rules for the practice.
(Reporting by Tom Arnold; editing by Andrew Torchia and Jason