Al Ramz Securities, one of the UAE's leading brokerage houses, has been granted a Margin Trading permit by the UAE’s Securities and Commodities Authority (SCA).
SCA has developed an effective, well-defined margin trading mechanism stipulating the legal rights and responsibilities of brokers and clients. Under the terms of the broker-client agreement, clients have the right to request funding by buying stocks under a Margin Account, without having to pay the underlying dues unless the value of these stocks falls below an agreed-upon minimum rate. In case of a decrease in the stock value to the minimum rate, Al Ramz Securities is entitled to sell all or part of the stocks within the Margin Account, thus increasing their value to the rate pre-determined with the client.
Mohammad Al Murtada AlDandashi, Partner and Managing Director, Al Ramz Securities, said: “The newly accredited Margin Trading service is a key step forward in supporting the development of our capital markets. We are pleased to be among the first players to be granted this permit. The agreement between the company and the client is well-defined and leaves no space for legal or credit risks. It is a simple yet highly important concept that will significantly contribute to market growth and boost investor confidence, thus driving better trading volumes. This move complements our vision of pursuing market development and offering a variety of services to meet the needs of our customers.”
Abu Dhabi-based Al Ramz Securities, which recently obtained a license to trade in foreign markets, provides various financial services to individuals and institutions across all its branches in Abu Dhabi, Al Ain and Dubai.