UAE amends merger regulations
13 Sep 2010
(MENAFN) The UAE’s Securities and Commodities Authority (SCA) said that its board has amended regulations, including the merger of brokerage companies, as the industry struggles with firm closures amid slumping market volumes, Reuters reported.
Slumping market turnover is forcing some equity brokerages in the UAE to cut staff or suspend operations as firms struggle to cope with costs and low revenue.
The resolution shall not take effect until after getting approval from the SCA and other concerned authorities.
The board also approved lowering the minimum number of broker representatives from four to two, according to the statement. Brokers also need to contract a body licensed to practice securities custody activities in the country, when trading in their own accounts, the new amendment stated.