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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Conduct of Business Module (COB) [VER34/01-20]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

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  • Pre-trade transparency

    • COB 9.6.2

      (1) An ATS OperatorG must disclose the information specified in (2) relating to trading of InvestmentsG on its facility in the manner prescribed in (3).

      (2) The information required to be disclosed pursuant to (1) includes:

      (a) the current bid and offer prices and volume;
      (b) the depth of trading interest shown at the prices and volumes advertised through its systems for the InvestmentsG ; and
      (c) any other information relating to InvestmentsG which would promote transparency relating to trading.

      (3) The information referred to in (2) must be made available to members and the public as appropriate on a continuous basis during normal trading.

      [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]

      • COB 9.6.2 Guidance

        1. When making disclosure, an ATS OperatorG should adopt a technical mechanism by which the public can differentiate between transactions that have been transacted in the central order book and transactions that have been reported to the facility as off-order book transactions. Any transactions that have been cancelled pursuant to its rules should also be identifiable.

        2. An ATS OperatorG should use appropriate mechanisms to enable pre-trade information to be made available to the public in an easy to access and uninterrupted manner at least during business hours. An ATS OperatorG may charge a reasonable fee for the information which it makes available to the public.

        3. An ATS Operator may seek a waiver or modification from the disclosure requirement in Rule 9.6.1(1) in relation to certain transactions where the order size is predetermined, exceeds a pre-set and published threshold level and the details of the exemption are made available to its members and the public.

        4. In assessing whether an exemption from pre-trade disclosure should be allowed, the DFSAG will take into account factors such as:

        a. the level of order threshold compared with normal market size for the InvestmentG ;
        b. the impact such an exemption would have on price discovery, fragmentation, fairness and overall market quality;
        c. whether there is sufficient transparency relating to trades executed without pre-trade disclosure (as a result of dark orders), whether or not they are entered in transparent markets;
        d. whether the ATS OperatorG supports transparent orders by giving priority to transparent orders over dark orders, for example, by executing such orders at the same price as transparent orders; and
        e. whether there is adequate disclosure of details relating to dark orders available to members and other participants on the facility to enable them to understand the manner in which their orders will be handled and executed on the facility.

        5. Dark pools are orders executed on execution platforms without pre-trade transparency.

        [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]