HSBC has called time on its UAE brokerage services to its retail clients, the latest firm to do so on the back of sluggish trading volumes and declining stock values.
"Given the market today, the limited volumes, the risk and volatility for retail clients, we decided to primarily focus on the institutional side of the business," Georges Elhedery, HSBC's regional head of global markets, told Bloomberg newswire yesterday.
"The investment required to make ourselves visible in the retail space versus the opportunity that the retail market offers us doesn't make a lot of sense today," Elhedery added.
Rasmala Holding, which is linked to Royal Bank of Scotland halted its retail brokerage operations in May, while Al Futtaim HC Securities is discussing a possible suspension of its trading licence, it has been reported.
The writing has been on the wall for a number of brokerages after Dubai's benchmark index has slipped more
than 80 per cent from 2005 levels.
Last year one trader told 7DAYS that it was a matter of time before many "top heavy firms" cut staff or closed down.
© 7Days 2011
