Clifford Chance
New SCA Regulations
24 October 2012
The SCA approves Regulations concerning Securities Lending and Borrowing, Short Selling, Market Making and Liquidity Providers.
The UAE Securities and Commodities Authority (the "SCA") has issued a number of Regulations to enhance the functioning of the UAE Markets. The Securities Lending and Borrowing, Short Selling, Market Maker and Liquidity Providers Regulations draw on international standards in an attempt to elevate the status of UAE Markets. The Regulations provide a regulatory framework; however, further rules need to be issued by the relevant UAE Markets before it becomes clear how activities will be undertaken in practice. In spite of this, the Regulations represent a positive step in attempts to have UAE Markets recognised as achieving "emerging market" status.
The Regulations are yet to be published in the Official Gazette and are therefore not yet in force. The Regulations will be effective the day after publication in the Official Gazette.
