The Middle East continues to place itself on the map in the world of business. Major cities are competing with each other to become the financial hub of the region. In light of the recent turmoil Dubai faced (2008) and the political uprising Bahrain’s central bank has granted an fx and commodity trading license to a local broker which shows positive signs for the industry.
Dubai was pushing for business as most international brokers like GFT, Saxo and NewEdge set up regulated offices. However Bahrain has been setting up the necessary infrastructure to be the next best alternative.
The Bahrain Financial Exchange (BFX) announced today that XO Bahrain has been approved by the Central Bank of Bahrain (CBB) as a licensed broker dealer of the Exchange. XO has over 10 years experience in commodity and currency trading in the regional and global markets.
It comprises of a team of experts that specialise in setting up sophisticated market access and providing trading solutions to satisfy the needs of a wide range of investors.
XO offers unparalleled access and technology services across capital markets as well as consultancy and connectivity services to clients through its distinct business model. XO Bahrain is establishing their operations in the Kingdom of Bahrain and also has a range of partnerships throughout the Middle East, Europe and North America. As part of the membership facilities, XO Bahrain will operate from a fully automated and serviced trading facility offered by the BFX to its licensed members on its trading floor at the Bahrain Financial Harbour.
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Mr Abdul Rahman Al Baker, Executive Director – Financial Institutions Supervision at CBB, commented on the agreement saying: “This partnership between the BFX and XO Bahrain clearly shows the opportunities which exist for international financial institutions in the Kingdom of Bahrain. This also proves the fact that the Kingdom of Bahrain continues to attract new financial institutions. We are glad that the BFX is facilitating foreign investment in the Kingdom of Bahrain.”
Commenting on this occasion, Mr. Arshad Khan, Managing Director and Chief Executive Officer of the BFX and the BCDC, said “We welcome XO Bahrain as our latest member which highlights our continuing commitment to creating a strong network of BFX members resulting in the establishment of a distribution channel across the MENA region. This further strengthens Bahrain’s leadership position as the financial hub of the region.”
Mr. Mohamed Abdelhamid, Managing Director of XO Bahrain commented on the agreement “We are delighted with our expansion and membership at the Bahrain Financial Exchange. This membership provides our clients access to the BFX’s platform, making it easier to trade all asset classes and instruments under one roof. We anticipate that this collaboration will prove to be very successful. We are very thankful to the Central Bank of Bahrain for approving our application.”
XO Bahrain provides consultancy services to its clients for FX and commodity trading as well as consultancy services to its clients for connectivity and low latency setups.
It will be interesting to understand the regulations and to what extent clients are protected.