Qatar bourse set to introduce new trading system

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The bourse, in which NYSE Euronext picked up 20% stake for $ 200mn, is creating a “central counterparty” or clearing house as it plans to implement the new trading system within the next 12-18 months, according to Andre Went, the newly-appointed CEO of QE, whose settlement now takes place on a T+3 cycle.

Went, who was earlier the managing director of NYSE Euronext in Amsterdam, hinted at reviewing the legislations, including the listing norms, even as he was silent on the initial public offering by the QE, whose primary aim is to support Qatar’s economy by giving investors a platform through which they can trade fairly and efficiently.

“Bonds, sukuks and ETFs are certainly one of the priority areas in diversifying the product portfolio,” he said in his first address to the media and added that proper investor awareness would be created in association with various partners, including academics, especially on derivatives.

When highlighted the need for a benchmark yield curve, which is imperative to gauge the performance of bonds, he said talks would be held with authorities, including Qatar Central Bank as well as the market participants.

Although he did not elaborate further on the diversification, he said there were several phases to go through and added a new trading system, using NYSE Euronext’s Universal Trading Platform (UTP), would be implemented in 12-18 months.

QE will be the first exchange outside of the NYSE Euronext family of bourse to utilise the UTP, which is the system operating in its European cash markets.

It is understood that once the central counterparty or clearing house is established, there could be expansion in the portfolio and trading, which is now in riyals, could be extended to multi currencies.

There are indications of listing derivatives, including on energy in association with London International Financial Futures Exchange, which is part of the NYSE. It is learnt that the central counterparty, which will seek to address the differing time zones, could enable local investors to trade in NYSE and the European bourses.

Terming QE as a growing exchange with strong domestic roots, Went said there were ambitious plans to make it truly world-class.

As per the partnership, NYSE Euronext will transform the QE into a globally integrated exchange and provide Qatar with total market infrastructure capability and the opportunity to reinforce the country’s position as a regional capital market with the introduction to Doha of new trading products, technology and international investors and issuers.

On the issue of IPO of QE, Went declined to entertain queries, saying that it was the prerogative of the shareholders, which are Qatar Investment Authority arm Qatar Holding (80%) and NYSE Euronext (20%).

 

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