DFM operates on an automated screen-based trading system. Most of the world's major stock exchanges have moved in recent years to similar screen based trading systems. It offers a distinct advantage over traditional floor trading in terms of transparency, liquidity and trading of prices. DFM has worked with renowned international experts in the design of a trading system, which is fair, transparent and efficient, so that investors' interests are served and the economic objectives of the UAE are met.
The trading system is an order driven system, which matches buying and selling orders of the investors. Investors can place their orders with DFM accredited brokers, who enter these orders into the trading system. Then, the system automatically matches buy and sell orders of a particular security based on the price and quantity requirements.
The trading system also generates and displays details of current and historical trading activity, including prices, volumes traded and outstanding buy and sell orders. This ensures that investors have the required information to be able to take informed investment decisions.
Safeguarding the efficiency and integrity of trading, requires DFM to conduct regular monitoring and controlling market activity. Market Control Section monitors compliance with the trading rules and regulations of ESCA and DFM and helps to ensure that trading is conducted in an orderly manner. Brokers Licensing and Inspection Section monitors brokers’ conduct to ensure integrity of the brokers' activities and that the best service is given to investors. Companies Listing and Compliance Section strives to furnish investors with all the necessary data concerning issuers of listed securities in a timely manner and to co-ordinate with the Market Surveillance Section to forbid the use of inside information.