The Dubai International Financial Exchange (DIFX) has begun exclusive negotiations with Euronext, AtosEuronext, LCH.Clearnet and Euroclear for the building of the component parts of a new electronic marketplace for the Middle East.
The DIFX is set up as part of the Dubai International Financial Centre (DIFC), the Dubai government’s initiative to create a major financial hub for the Middle East region as a whole. It is planned that the DIFX will initially concentrate on the trading of equities and bonds, with a derivatives market following later.
The chairman of the DIFX, Lynton Jones, says the selection of the winning bid followed detailed discussions with several of the world’s major exchanges, clearing and settlement houses over the last few months. Negotiations with Euronext, AtosEuronext, LCH.Clearnet and Euroclear are expected to last for a period of two to three months.
Says Jones: "At the end of that period we expect to be able to reach agreement on a final proposal for the definitive blueprint of the DIFX, which we plan to start live trading in the early part of 2005."