Arab Advisors Group
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A new report from Arab Advisors group reveals that less than a third of Arab Stock Exchanges have a disaster recovery plan.
Thursday, August 8, 2002

A newly released report from the Arab Advisors Group overviews the implementation of Information Technology at Arab Stock Exchanges, and compares the different approaches at these exchanges. Saudi Arabia, Jordan and Morocco's stock exchange lead the Arab World in online remote trading set-ups.

August 8, 2002 -

Arab stock exchanges have gone a long way from their old manual trading techniques that spanned the eighties and early nineties. All of these exchanges have now automated their trading systems using either international vendor systems or in-house developed software. Although Arab markets made a late move towards automation when compared to international developed markets, they are picking up very quickly. New systems have offered more efficient trading, lower cost per trade and improved transparency across all markets. Still, the Arab Advisors Group's research revealed that less than a third of Arab Stock Exchanges have a disaster recovery plan. Even more worryingly, less than 15% of the exchanges have a plan that is tested by all market participants.

A new report, entitled "Information Technology Implementation at Arab Stock Exchanges", was released to the Arab Advisors Group's ( Strategic Research Service subscribers on August 07, 2002. The report explores the Trading Systems and Technology currently used by the Exchanges across the Arab Region. The 20-page report surveyed and analysed all Arab stock exchanges in a painstaking effort that spanned two months.

"Our research shows that most exchanges are still conservative in their approach." Mr. Jawad Abbassi, Arab Advisors Group's President and the author of the report said. "Floor trading is mainly the trend because it provides for easier surveillance of brokers, protection from communication failures and preserves the old trading culture of broker interaction and news sharing. Nevertheless, the markets of Saudi Arabia, Morocco and Jordan have already moved into complete floorless trading where all trading is now being conducted from broker offices connected via data networks. Saudi Arabia has, by far, the largest number of remote trading stations. Jordan came in as a distant second closely followed by Egypt and then Morocco" Mr. Abbassi added.

"Information dissemination is one of the most important aspects of a modern stock exchange. Investors and financial institutions need electronic access to market spot information, Arab stock exchanges still need to develop their market dissemination services to reach the level present in developed markets". Mr. Abbassi also noted.

The report highlights opportunities that exist for IT companies who would like to participate in this expansion of the stock exchanges' technological capabilities. Data services companies in particular will be able to offer a lot to exchanges especially concerning remote connections, digital data services, Internet connection and hosting.

The report also noted that there is also a good deal for data vendors to do as exchanges try to increase the bases of investors receiving online information. Storage systems vendors have an opportunity as exchanges move to improve their disaster recovery facilities and improve performance. Professional software development companies will have a great deal to offer. Professional IT consulting companies will make it all happen, as exchanges increasingly need advice in security and project management.

"Arab Advisors Group's "Information Technology Implementation at Arab Stock Exchanges" report is the first of many reports to come that will focus on the technology and telecommunications implementation at the Arab financials vertical. These reports will be available shortly through a subscription based service focuses on the financials vertical." Mr. Bahaa Najeeb, Arab Advisors Group's sales and marketing manager stated.

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