Sunday 8 August 2010

Brokerages may have to bolster reserves - The National Newspaper

The financial market regulator is looking at raising the minimum level of capital brokerages are required to hold, fearing their reserves are too low.

Such a move by the Emirates Securities and Commodities Authority (SCA) would trigger further mergers and closures in the sector, which has suffered from weak volumes after the global financial crisis.

“Brokerages are aware of this as they [SCA officials] have been meeting with the heads of brokerages since the beginning of the year to discuss capital requirements among other regulations set to be put in place,” said Saad al Chalabi, an institutional trader at AlRamz Securities in Abu Dhabi."

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