The Bahrain Financial Exchange (BFX), the MENA’s first ever multi-asset exchange, officially announced the launch of its operations on Tuesday.
The will essentially make BFX to play a major role in tapping enormous opportunities in the Islamic financial products market world-wide which is projected to reach $2 trillion by 2015.
According to experts the launch of BFX will also reinforce Bahrain’s position as a robust banking and finance centre in the MENA region.
Under the patronage of the Prime Minister Prince Khalifa Bin Salman Al Khalifa, Rasheed Mohammed Al Maraj, governor of the Central Bank of Bahrain, officially announced the launch of BFX operations at a ceremony attended by 400 guests including ministries, representatives of leading financial institutions, business houses and exchanges.
The BFX Chairman Jignesh Shah, Group CEO and Chairman of Financial Technologies Group, BFX’s parent company, who was India’s youngest dollar billionaire in 2008, addressed the Press conference announcing the launch of BFX operations. Shah was also joined by Bahrain based Managing Director and CEO of the BFX Arshad Khan during the press conference.
“The Central Bank of Bahrain welcomes the BFX to the Kingdom of Bahrain and is proud that the CBB’s long track record and reputation as a transparent and effective regulator was a major factor in its location decision. I wish the BFX, its members and participants every success in establishing multi-asset markets within the Middle East financial services sector,” said Rasheed Al Maraj, Governor of the CBB.
“The establishment of the BFX will result in additional business and employment opportunities in the Kingdom of Bahrain and the region, and I am pleased to be associated with the BFX as its first independent director,” the Prime Minister’s Personal Secretary Tawfiq Al Alawi, and Board Director of the BFX in a statement said.
Scheduled to commence live operations on 7th February 2011, the BFX will see two phases to its roll out. In the first phase, its Islamic division Bait Al Bursa will launch its e-Tayseer platform for general use on the 7th of February 2011, followed one month later by its conventional division on the 7th of March, 2011. The phased approach has been purposely designed to allow market traders adequate time to develop their business on the BFX’s Islamic division ahead of the conventional market launch.
“The launch ceremony marked the culmination of two years of concentrated work, during which time our teams have been working to ensure a seamless launch of operations. We are particularly proud of Bait Al Bursa (House of Exchanges), the first dedicated Islamic transaction platform in the region, and I am happy to say we have received interest from key Islamic financial institutions, a considerable milestone which demonstrates the appetite for our services, as well as serving as proof to Bahrain’s strong status as a financial centre. As well as our distinguished guests from across the Middle East,” BFX Chairman Jignesh Shah told the guests.
Being the first exchange of its kind, the BFX has been lauded by experts in the financial industry as revolutionary in the region with its multi-asset approach, and its platforms are expected to transform the concept of trading across the MENA region. The BFX’s specialised teams have spent two years developing the sophisticated trading platform to ensure its robustness and transparency, while adhering to the strict regulatory standards of the CBB.
The unique platform allows users to trade a wide range of multi-asset class instruments through a single exchange environment which will be internationally accessible to trade securities, structured products, Shariah-compliant financial instruments and derivatives.
In its initial stage, 10 tradable products will be available on the BFX’s conventional platform, including commodities, currencies and equity indices, as well as e-Tayseer on its Islamic platform, which offers traders and investors real portfolio diversification from day one. The BFX also provides a unique opportunity for the MENA financial services sector to link-in with established markets and take a step forward on the global financial services stage.
The BFX was set up in a purpose-built exchange building outfitted with state-of-the-art technology and facilities such as a fully integrated electronic trading platform and a plug-and-trade trading floor. These are supported by a global business and sales development programme, which includes the BFX Training Institute (BFX-TI), a dedicated and fully-accredited financial training institute.