Borse Dubai to overhaul trading and post-trade technology of Dubai Financial Markets

Nasdaq and Borse Dubai have announced a new agreement to bolster the technological infrastructure of Dubai's stock exchanges, Dubai Financial Market (DFM) and Nasdaq Dubai, and further improve post-trade practices.

Under the agreement, Nasdaq will deliver a new INET-powered, multi-asset trading technology engine, a state-of-the-art cash equities clearing module and enable an in-memory vetting model on the central securities depository solution. It is expected that the new infrastructure will increase performance, speed and resiliency, all under the new Nasdaq Financial Framework architecture.

The infrastructure renovation is expected to be completed by early 2019 and will pave the way for various enhancements in DFM, including central counterparty clearing. 

His Excellency Essa Kazim, Chairman, Borse Dubai said: "We are delighted to collaborate with Nasdaq to implement this comprehensive system overhaul that will provide our market participants with a cutting-edge infrastructure and enable us to introduce numerous financial instruments and products through an efficient and highly advanced platform."

The technology overhaul will support Borse Dubai's growth focus, including enhancing its post-trade services, boost efforts to attract domestic and international capital, and run cutting edge technology based on international standards and best practises under local environment. This move also positively impacts Nasdaq Dubai, as most of the trading and post-trading functionalities of Nasdaq Dubai are executed through the common technology platform that it shares with DFM. 

James Martin, Regional Manager, EMEA, Market Technology, Nasdaq said: "We are honored to support Borse Dubai as they move to strengthen their market infrastructure with next generation trading and post-trade technology. As Dubai continues to strengthen itself as a major international financial centre, it needs to transform how its markets operate and perform to meet and exceed international standards under local market conditions, especially in the area of risk management and clearing. The new technology vision by Borse Dubai will give a clear signal to the world's capital markets that Dubai is dedicated to take their markets to the next level."

Nasdaq's exchange technology, including trading, clearing, CSD and market surveillance systems, is in operation in over 85 marketplaces across the Americas, Europe, Asia, Australia, Africa, the Middle East and the Caribbean.