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DFM m-enables trading information

Dubai Financial Market Strikes ASP Agreement with Ducont for SMS and WAP Services

Since its inception a little over a year ago, Dubai Financial Market (DFM) has been building up its mass, in terms of awareness, transactions, companies and monetary volume. The capital market has already created a web site - www.dfm.co.ae - that posts up-to-date stock information from the day's trading. However, making stock information available through the Internet wasn't instantaneous enough. Consequently, DFM has recently struck as ASP partnership agreement with Ducont to develop, host and deliver SMS and WAP services around Dubai's stock market

SMS and WAP services are "part of a strategy to get information as fast as possible to the public and to investors, through whatever means we feel are suitable," says Essa Abdulfattah Kazim, director general, DFM. "Initially we disclosed all this information through the web site, but there was greater demand by the investors, who didn't have immediate access to the Net. So we thought 'shy don't we also provide such information through the phone,' which would be more convenient for messages to be sent from the system."

Work to m-enable stock information has been ongoing since the start of the year. The Supreme Quote System (SQS) went live at the beginning of June; however, a big marketing campaign will only kick off this month. Currently, the service is provided for free, although Ducont is working on several subscription-based packages. "The response we've got from our clients and investors is extremely favorable," says Kazim.

The SQS application is based on Ducont's own Companion platform and provides bi-lingual SMS and WAP support. Subscribers to the service will be able to request and receive alerts and updates on any of the 12 companies listed on the stock exchange. For example, whenever certain stocks go above or below a certain 'trigger level' the subscriber will receive an alert. "We're telling people if a stock goes below a certain level or above a certain level. Now investors can make the decision (to buy or sell) quickly. They can then make the deal," explains Kazim.

Efforts to migrate information to both the internet and develop mobile services have been made a lot easier due to the automated trading, clearing and settlement system used by DFM. The AS/400-based EFA trading platform is already used by a number of stock markets across Middle East and in North America. Also DFM began the process of 'dematerialization' from physical share certificates, to an electronic system a year ago, and has moved roughly 40% of available shares into an electronic format.

Further plans to evolve the service are already being worked on. Although, DFM is working with partners to develop some form of e-trading system, there is no firm delivery date.

"The next part of the strategy is to work on e-trading, whereby people can access the system and continue trading," says Kazim. "The demand is there and then when we feel it is time we will launch it. But we are working with companies already."

DFM's plans to build critical mass will also be aided by the recently announced tie-up with the Abu Dhabi stock exchange. Both capital markets share the same EFA trading platform.

"We have successfully linked the two stock exchanges together. Brokers sitting there have direct access to our engine; our brokers have direct access to their engine. You can place orders through your broker here for companies in Abu Dhabi," says the director general.

Although detailed plans for the integration of technologies and services are not yet available, Ducont's managing director Ivan Fernandes intends to deliver similar SMS services for the region's other stock markets. The developer also recently formed a global partnership with Reuters to provide stock market information on the mobile platform. Although Ducont already has its initial stock market customer, the subscription model has yet to be proven at the local level. However, Fernandes is confident that the service will turn a profit within eight or nine months.