Dubai Financial Market Settles Inaugural Repo Transactions

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Dubai Financial Market Settles Inaugural Repo Transactions

Dubai Financial Market (DFM) today announced it has recently settled its inaugural repurchase (repo) transactions totaling 6 million Gulf Navigation shares and 45 million Drake & Scull International (DSI shares through its new repo settlement infrastructure. The transaction comes closely after DFM launched this new service to enable investors to unlock value of their DFM-listed securities, in a first step of its kind amongst regional markets.
 
Equities First Holdings, LLC (EFH), a global lender and a leader in shareholder financing solutions, is the first Repurchase (Repo) transactions provider in April 2018.
 
Maryam Fikri, Chief Operations Officer (COO) and Head of Clearing, Settlement and Depository Division of DFM said: “We are very pleased with these first transactions as they reflect that DFM is on track in creating value for its investors in releasing values of their securities through an OTC repo with a lending company, which may then lead to further improvement in trading activity. We hope financial institutions will leverage on this new DFM infrastructure to create new products.”

A Repo, or repurchase agreement, is a financial instrument in which a Repo buyer provides capital to a Repo seller collateralised by the seller’s securities. After a fixed period of time, the seller has the opportunity to repurchase the securities used as collateral from the buyer at a set price agreed upon at the beginning of the transaction.

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Maryam-Fikri-2.jpg

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