ID :
60950
Sun, 05/17/2009 - 13:44
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https://oananews.org//node/60950
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Nasdaq Dubai cuts capital requirements
Nasdaq Dubai has substantially reduced this month the minimum capital requirement for three categories of membership introduced by the exchange in October 2008 according to a report in "Emirates Business."
In a notice, Nasdaq Dubai said the minimum capital requirement for a General Clearing Member (GCM) of Nasdaq Dubai Securities Market will be US$8m (Dh29.4m) compared to the US$20m minimum capital stipulated in October 2008. The minimum capital required for GCM before October 2008 was US$5m.
"In order to be admitted as, and remain, member of Nasdaq Dubai, the applicant must satisfy Nasdaq Dubai that it has, and continues to have sufficient capital for its intended business at the bourse that complies with the revised minimum capital requirement," the notice said.
The minimum capital required for individual clearing members and non-clearing members the minimum capital is revised to US$2m and US$200,000 respectively.
For membership in Nasdaq Dubai Derivatives Market, the minimum capital requirement for a GCM is US$10m and for individual clearing members and non-clearing members, the revised minimum capital is US$2m and US$200,000 respectively.
An equivalent amount should be in liquid funds that are readily accessible, the notification added.
Upon evaluating additional capital requirement exceeding the minimum capital requirement listed above, Nasdaq Dubai may recognise financial support commitment from its owner or equivalent.
In addition, a clearing member should also be subjected to a capital adequacy regime by a supervision authority recognised by Nasdaq Dubai that at least covers the Basel Committee on Banking Supervision framework regarding credit risk and market risk.
In a notice, Nasdaq Dubai said the minimum capital requirement for a General Clearing Member (GCM) of Nasdaq Dubai Securities Market will be US$8m (Dh29.4m) compared to the US$20m minimum capital stipulated in October 2008. The minimum capital required for GCM before October 2008 was US$5m.
"In order to be admitted as, and remain, member of Nasdaq Dubai, the applicant must satisfy Nasdaq Dubai that it has, and continues to have sufficient capital for its intended business at the bourse that complies with the revised minimum capital requirement," the notice said.
The minimum capital required for individual clearing members and non-clearing members the minimum capital is revised to US$2m and US$200,000 respectively.
For membership in Nasdaq Dubai Derivatives Market, the minimum capital requirement for a GCM is US$10m and for individual clearing members and non-clearing members, the revised minimum capital is US$2m and US$200,000 respectively.
An equivalent amount should be in liquid funds that are readily accessible, the notification added.
Upon evaluating additional capital requirement exceeding the minimum capital requirement listed above, Nasdaq Dubai may recognise financial support commitment from its owner or equivalent.
In addition, a clearing member should also be subjected to a capital adequacy regime by a supervision authority recognised by Nasdaq Dubai that at least covers the Basel Committee on Banking Supervision framework regarding credit risk and market risk.
