Twelve brokerages in the United Arab Emirates have submitted requests to the market regulator, the Securities and Commodities Authority, to suspend operations this year after volumes and revenue declined.
Five companies received approval to shut and their licenses have been suspended for one year, Ibrahim Obeid Al-Zaabi, deputy chief executive officer for licensing, supervision and enforcement, said in an e-mailed response to questions today. The companies may be able to resume operations after meeting registration requirements, he said.
The volume of shares traded in Abu Dhabi has plummeted to a daily average of 63 million so far this year, the lowest since 2006. The ADX General Index of 66 stocks has slumped 59 percent since reaching a record of 6,237.98 in May 2005. The measure was little changed at 2,535.48 at the 2 p.m. close in Abu Dhabi today.
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