DFM introduces new rules for Repo, Murabaha transactions

Dubai Financial Market (DFM) introduced two new regulations — repurchase agreements (Repo) and Islamic Murabaha transactions — to allow market participants to diversify and create more value using their listed securities in a non-trade related manner, the bourse said in a statement on Monday.

The regulations are in line with international best practices and in full coordination with various market participants, it added.

Investors may utilize the two mechanisms to transfer their listed securities as part of a Repo transaction or an Islamic Murabaha transaction with shariah-compliant financial institutions, DFM said.

Earlier this month, the bourse launched the regulated short-selling (RSS) to provide market participants with new tools to further strengthen their trading activities.