DUBAI, June 10 The Bahrain Bourse has approved
regulations allowing margin trading and set up a framework for
market makers in an effort to boost liquidity, it said on
Margin trading, which investors use to leverage their money,
is to start in September. Market makers stand ready to fill buy
and sell orders on a continuous basis; the bourse did not say
when they might start operating or if any companies had been
chosen for that role.
With a capitalisation of just $21 billion, Bahrain's stock
market has struggled to attract regional funds in the face of
competition from much bigger markets such as Saudi Arabia, Qatar
and the United Arab Emirates.
The Bahrain Bourse also said on Tuesday that it had approved
trading of options, exchange-traded funds and real estate
Late last year, the UAE established regulations for market
makers and licensed the first one as it prepared for its
inclusion in the MSCI emerging market index, which occurred at
the end of last month.
(Reporting by Nadia Saleem; Editing by Andrew Torchia)