SCA allows investors to trade via custodians

The board of directors of the Securities and Commodities Authority has approved a decision to permit investors to trade securities via custodians in the financial markets in the UAE.

The current decision of the SCA would promote the performance of the stock markets in the UAE to the international standards.

This method of trading will be optional till 2010, but it will become compulsory from 2011.

During the board meeting, the implementation of the International Securities Identification Number (ISIN) on securities being traded on the financial markets in the UAE was also approved by the SCA.  

Sultan bin Saeed Al Mansoori, chairman of SCA, presided over the board meeting in which the concerned decision was taken.

According to the SCA, the new system would help international investors in assessing stock markets in any country worldwide.