Qatar Exchange Expects to Launch Direct Market Access Service This Summer

Doha, July 10 (QNA) - Qatar Exchange (QE) expects to launch the Direct Market Access (DMA) system also called sponsored access service later this summer, a senior management executive said here Sunday.
QE Chief Operating Officer Olivier Gueris, in an exclusive interview with Qatar News Agency (QNA) said, "DMA is a cost effective system which we hope to launch later this summer.
"This system offers international and local investors direct access to the market without going through the local broker's Order Management System. They would need to be sponsored by a local member of the Exchange for direct access to the market which guarantees higher confidentiality of their orders and much lower system latency."
Its transaction expenses are lower since the trader pays only for using the technology and not for order management and oversight responsibilities that come with an order passed to a broker for execution, Gueris said.
"We have taken a dedicated line between Doha and London which connects to the worldwide network of the New York Stock Exchange potentially providing Qatar access to thousands of brokerage houses and buy sides. We are currently finalising the details with the regulator (Qatar Financial Market Authority) ahead of the launch," he said.
Investors from Europe mainly as well US have shown interest in using this service, he said. The efficacy of this system is that chances of leaking information are less since the trading is done anonymously using the DMA service provider s identity as a cover.
Orders are handled directly by the user giving him more control over the final execution and the ability to exploit liquidity and price opportunities more quickly.
On Qatar's and the QE's prospects, Gueris said, "The year started well for Qatar with the record LNG (Liquefied Natural Gas) output and the FIFA Football World Cup 2022 bid win. There is huge optimism on the country s outlook and potential MSCI (Morgan Stanley Capital International) upgrade."
The pending upgrade from Frontier Market to Emerging Market status is significant for QE since the MSCI Global Equity Indices are widely tracked global equity benchmarks and serve as the basis for over 400 exchanged traded funds throughout the world.