U.A.E. to Mull Rule Changes After Reviewing June Market Turmoil - Bloomberg

U.A.E. to Mull Rule Changes After Reviewing June Market Turmoil - Bloomberg:



"The United Arab Emirates may amend rules governing bank lending against shares after reviewing June’s stock price swings in Dubai and Abu Dhabi, the market regulator said today.



Representatives of the Securities & Commodities Authority, the central bank and the country’s two main stock exchanges met in Abu Dhabi to consider the volatility, and will make changes to lending regulations if necessary, the SCA said in an e-mailed statement today. The parties also agreed to set up a joint permanent committee to monitor trades and ensure the “absence of any suspicion of manipulation of securities’ price,” according to the statement.



Dubai’s benchmark share index plunged 22 percent in June, its biggest monthly decline since November 2008, fueled by investor concerns over changes in ownership and management at Arabtec Holding Co. (ARTC), the country’s largest publicly traded construction company. The decline may have been amplified by so-called margin calls, attempts by banks and brokerages to offload stocks to pay back some borrowed money that was used to buy them, brokers and analysts said at the time."



'via Blog this'