x Abu Dhabi, UAESunday 23 July 2017

Task force a way forward

Jeff Singer of the Nasdaq Dubai thinks a task force can help increase trading levels.

Jeff Singer of the Nasdaq Dubai thinks a task force can help increase trading levels.

I do not think any one action in isolation will fix the markets and increase trading levels sufficiently.

I do think it will be a combination of decisions made by UAE authorities, market regulators, exchanges and business leaders that will enable the markets to recover at a faster rate.

Because different parties with different areas of authority are required, my first recommendation is a special task force be created that has representation from the following organisations or companies:

Regulators: the Securities and Commodities Authority; and Dubai Financial Services Authority.

Stock exchanges: Dubai Financial Market; Abu Dhabi Securities Exchange; and Nasdaq Dubai.

Practitioners: a global custodian; a banker; a consultant; and a lawyer.

Official bodies: various authorities in the UAE with capital markets expertise that could contribute valuable insights and suggestions.One of the most important aspects of this task force is that it would operate under the direction of the Ministry of Economy; this makes a clear statement that it is important at the federal level.

The task force would be mandated to identify the capital market's problems and then propose policy, regulation and procedures to address the issues.

These recommendations would be not only broad in their reach but also specific in the detail.

Recommendations should not be deemed as good on paper, but impractical in execution.

The task force would not be intended to be a permanent UAE fixture, but an ad hoc committee designed for a specific purpose and would be disbanded when the markets were deemed to be in a state of recovery.