UAE To Unveil Short Selling Draft Rules

UAE market regulator, theSecurities and Commodities Authority(SCA), will introduce draft rules on short-selling very soon, said the minister of economy,Reutersreports. Short selling is not permitted on the UAE’s two markets,Dubai Financial MarketandAbu Dhabi Securities Exchange, but still some international firms, operating outside the jurisdiction of SCA, offer short selling against their own inventory.

The SCA is carrying out research on short selling, lending and borrowing securities and options. Short selling and reforms, such as sanctioning margin trading, could boost liquidity as many brokers closed or asked for their licenses to be suspended due to falling volumes.

Click here for the story fromReuters.