Sunday, January 30, 2011

Bank of America Merrill Lynch joins NASDAQ Dubai’s equity derivatives market

Market’s first derivatives General Clearing Member will provide vital post trade clearing services promoting further growth.
Dubai, 30 January 2011 – Bank of America Merrill Lynch has joined NASDAQ Dubai’s equity derivatives market as its first General Clearing Member (GCM).  This enables Bank of America Merrill Lynch to clear the trades of other brokers as well as its own, injecting liquidity into the fledgling market.    
Brooks Stevens, Head of EMEA Futures and Derivatives Clearing Services for Bank of America Merrill Lynch, said: “As the first GCM on the UAE’s only on-exchange equity derivatives market, we look forward to playing a leading role in facilitating increased trading capacity within the region. NASDAQ Dubai’s equity derivatives platform provides investors with unique tools to hedge their exposure to shares of the UAE and other Middle East companies.”
NASDAQ Dubai’s equity derivatives platform consists of futures listed on 21 individual UAE companies and on the FTSE NASDAQ Dubai UAE 20 share index. Companies in the index include DP World, which is listed on NASDAQ Dubai, and leading companies listed on the Dubai Financial Market and the Abu Dhabi Securities Market.
Index constituents are selected for high market capitalisation and liquidity as well as openness to foreign investment.
Dean Noble Head of Business Development of NASDAQ Dubai, said: “Bank of America Merrill Lynch’s arrival as a GCM is a landmark in the development of our equity derivatives platform. The market has huge potential for growth in a region where hedging mechanisms are in short supply and investors need to offset risk.”
“A vibrant equity derivatives market can also stimulate trading volumes in the underlying equities themselves, in times of falling as well as rising prices.”   
NASDAQ Dubai’s equity derivatives market won the Futures & Options World (FOW) 2009 Award for ‘Best Innovation by an Exchange in Product Design, Middle East.’

About NASDAQ Dubai:
NASDAQ Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists equities, equity derivatives, exchange-traded commodities, structured products, Sukuk (Islamic bonds) and conventional bonds.
The majority shareholder of NASDAQ Dubai is Dubai Financial Market (DFM) with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of NASDAQ Dubai is the Dubai Financial Services Authority (DFSA). NASDAQ Dubai is located in the Dubai International Financial Centre (DIFC).
About Bank of America Merrill Lynch:
Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with approximately 5,900 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and a member of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.

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