The United Arab Emirates Securities and Commodities Authority urged brokerages that extend margin trading services to obey regulations and sell clients' shares if shortages in their accounts are not filled on time. The market regulator said it was making its statement in response to media reports about irregularities in margin trading.
Leveraged trading fuelled the sharp rise of UAE bourses earlier this year, and some retail investors have struggled to sustain those positions as the markets have plunged in recent weeks.
The SCA's statement reiterated that brokerages must inform clients of any shortages in their margin accounts on a daily basis, and that shortages must be filled within a maximum of two days.
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