DFSA Announces New Rules

• Sets the stage for launch of operations of DIFX
• The Dubai Financial Services Authority (DFSA), the independent regulator of the Dubai International Financial Centre (DIFC), has taken another step towards the creation of a fully functioning capital market in the region with the publication of three new modules rules.
• The Offered Securities module introduces regulatory rules for the offering of Securities in or from the DIFC, and sets out the DFSA’s oversight of the listing process. Publication of these rules represents another significant step towards enabling the DIFC’s Exchange, the DIFX, to commence operations later this year.
• The Authorised Market Institution module sets out the DFSA’s risk-based approach to the supervision of Authorised Market Institutions. These are firms licensed to conduct clearing operations as well as Exchanges themselves.
•  The Recognition module sets out a regime that provides for certain overseas Exchanges and Clearing Houses (including settlement operators) and firms to be recognised by the DFSA in order to conduct certain financial activities within the DIFC without a presence in the DIFC. The rules also set out the process by which these entities should apply for Recognition.

Dr. Habib Al Mulla, DFSA Chairman said “These modules represent a further significant step toward the establishment of a truly world Class regulatory regime for the operation of capital markets in the DIFC. The Rules reflect the DFSA’s commitment to implementing legislation of the highest international standards.”

Acting Chief Executive, David King, observed: “With these rules now in place, the DFSA has taken a major step towards the creation of fully functioning capital market in Dubai operating under world-class regulatory standards. Our progress is on schedule, and the DIFC, which already has 15 international institutions licensed to undertake financial and Related business activities in the Centre, will soon be taking its rightful place among the world’s leading Securities markets.”