Sunday 8 May 2011

Connection is the key to markets - The National

Stock markets in Arab countries are in talks to unify behind a key settlement system that forms a major part of the UAE's push to upgrade from a frontier to an emerging market.

Fadi Khalaf, the secretary general of the Arab Federation of Exchanges, which counts 16 stock markets as its members, including all GCC states, said he was "confident" the markets would "connect together" by combining their clearing and settlement systems in the next 12 months.

The settlement system, so-called delivery versus payment (DvP), in which securities are delivered and cash received on the same day, is a key component for upgrading the UAE and Qatar to the MSCI's "emerging market" index, from their current designations as "frontier markets".

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