New rules are on the way: Minister.
ABU DHABI -- The Minister of Economy Sultan bin Saeed Al Mansouri has hinted that the market making, short selling, securities lending and borrowing and derivatives regulations are under review for a near-future drafting and approval.
Inaugurating the Fifth GCC's Regulators Conference here in the capital, the minister said in the UAE, regulators are continuously monitoring and studying regulatory changes and their effects on the respective financial sectors around the globe.
"Many regulations have been enacted and more are on the way," he said.
The minister told GCC officials and professionals that recent securities regulations covered a wide array of issues, some of which are research analysis, broker dealer, custody, margin trading, and collective investment schemes. "These regulations are positively impacting the UAE economy and have resulted remarkably," he said.
UAE market volumes plunged to a six-year low in 2010, while Dubai's index is down more than 70 per cent from a January 2008 high.
Al Mansouri said that the GCC countries have distinctive regulatory needs, as the financial sector is developing at an unprecedented pace.
"Regulators need to tackle issues like introducing new instruments besides the pure longing of stocks of listed companies, improved mechanisms like Delivery Versus Payment (DVP), auxiliary tools like security lending and borrowing, licensing new financial services like investment management and regulate existing practices like rating agencies, auditing firms and research and financial analysis services."
To supplement all of this, he said the areas of corporate governance, transparency and disclosure and compliance are of prime importance.
After the financial crisis, regulators around the world and especially in the GCC, are assuming an ever increasing role to strengthen the foundations of the financial sector, he said.
"The regulatory role is under reform in many countries to touch all basis including systemic stability, micro prudential regulations, conduct of business and consumer protection," the minister said. Regulators need to be proactive by being prepared for adverse outcomes, and need to be reactive to the needs of the industry, he said.
Al Mansouri said that the world is still learning from past experiences and evidence shows that the regulatory process is an evolving one. He called upon participants to share their knowledge and expertise to discuss predicaments, propose solutions and share best practices in issues like: the challenges facing financial market regulators, the evolution of corporate governance, attracting institutional investments. --firstname.lastname@example.org
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