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Dubai sets up new firm to facilitate activities of DFM companies

DUBAI, January 26, 2022

Dubai has announced the launch of xCube, a new entity that will organise and facilitate the activities of market maker companies in the Dubai Financial Market. 
 
The xCube aims to strengthen the competitiveness of the financial markets in Dubai, and to attract more capital and investors from inside and outside the country. 
 
The market maker fund also seeks to invest in promising stocks and hedge risks, which in turn leads to enhancing the confidence of investors and create a more dynamic equities market.
 
Announcing the launch, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said this comes as a part of the Dubai Securities and Exchange Higher Committee strategy aimed at increasing the size of the stock market in the Emirate to AED3 trillion ($816 billion) in the coming period.
 
He has appointed Governor of Dubai International Financial Centre Essa Kazim as the new company's board chairman with Arif Amiri, Saeed Al Awar, Hind bint Mohammed bin Kharbash and Jacques Visser as the board members.
 
xCube plans to develop and adopt state-of-the-art algorithms and technology to perform market making activities and high frequency trading on both cash equities and derivatives listed on local markets.
 
Kazim said: "Both retail investors and institutional investors will benefit from the improved spreads and the lower volatility that often results from market makers playing an active role in markets. By bringing the latest technologies and know-how in market making to the local markets, we anticipate renewed interest from investors both locally and globally."
 
The Dubai Securities and Exchange Higher Committee’s has announced last year plans to launch 2 funds with a total value of AED3 billion to boost trading on the stock markets and encourage small and medium companies to list in the Dubai financial markets.



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