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Polaris to issue exchange-traded funds in Abu Dhabi

Polaris Group, owner of Taiwan’s largest online securities brokerage, plans to issue the first exchange-traded funds (ETF) on the Abu Dhabi Securities Market as early as June, the Taiwan Stock Exchange said yesterday.

The Abu Dhabi market would revise its rules in June to allow ETFs to be traded, Wu Rong-I (吳榮義), chairman of Taiwan Stock Exchange Corp, said in a briefing.

He met in Taipei yesterday with Abu Dhabi Securities chief executive Tom Healy and executives of several Taiwanese brokerages.

The two exchanges said on Dec. 13 they had signed an agreement to share information and encourage cross-listings. The Taiwan exchange also expects similar tie-ups with other Middle East exchanges, such as the Dubai International Financial Exchange Ltd, Wu said at the time.

“Abu Dhabi executives are seeking cooperation opportunities with Taipei, in addition to Japan and Singapore in the Asian region,” Wu said.

He said that one Abu Dhabi brokerage, that he did not identify, would soon visit Taipei to seek a partner in which to invest.

Polaris will start by offering one or two ETFs backed by shares in high-technology companies. The ETFs would include companies that are Shariah-compliant, meaning it would exclude financial institutions, tobacco, gaming and others firms that do not comply with Islamic principles.

ETFs are becoming increasingly popular with investors because they are cheaper and easier to trade than mutual funds.
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