UAE Law and Practice Contributed by: Stefan Mrozinski, Gabrielle Margerison (nee Lowe) and Arnold Krutilins, White & Case LLP
7. High-Frequency and Algorithmic Trading 7.1 Creation and Usage Regulations A separate regulatory regime for high-frequency and algorithmic trading does not appear to be provided for under the UAE’s financial services regulatory frameworks. This trading would be regulated generally as discussed in 6 Market- places, Exchanges and Trading Platforms . 7.2 Requirement to Be Licensed or Otherwise Register as Market Makers When Functioning in a Principal Capacity There does not appear to be a requirement for principals to register as market makers under applicable UAE regulatory regimes. 7.3 Regulatory Distinction Between Funds and Dealers The authors are not aware of funds or dealers engaging in high-frequency and algorithmic trading activities in the UAE. 7.4 Regulation of Programmers and Programming The authors are not aware of any regulatory regime governing the development and creation of trading algorithms and other electronic trading tools in the UAE.
part of an insurer’s underwriting risk policies and procedures, including: • clear identification and quantification of the insurer’s willingness and capacity to accept risk; • clear identification of the classes and char - acteristics of the insurance business that the insurer is prepared to underwrite; • formal evaluation processes for the effective assessment of risks underwritten; • concentration limits; and • methods for monitoring compliance with underwriting policies and procedure. The FSRA sets out similar conditions. From a commercial perspective, insurtech has significantly impacted the underwriting process for insurance policies. To review and assess an individual’s risk profile, multiple data points are used through mined, aggregated or historical data to make educated assumptions about the individual in question. This underwriting pro - cess is underpinned by the use of the internet of things, data analytics methods and AI. 8.2 Treatment of Different Types of Insurance Insurance companies are, in principle, all regu - lated in broadly the same way, irrespective of the type of insurance provided. As an excep - tion to this, takaful, an Islamic form of providing insurance/reinsurance, is regulated separately in line with the requirements of Sharia. The relevant authorities responsible for issuing the regula - tions and supervising the insurance sector and its participants are:
8. Insurtech 8.1 Underwriting Processes
The authors are not aware of a dedicated under - writing process specific to insurtechs that is mandated by UAE regulation. The CBUAE gen - erally requires insurance companies to main - tain an underwriting policy and that records of underwriting are kept. The DFSA sets out spe - cific considerations that should be included as
• the CBUAE in “onshore UAE” ; • the FSRA in the ADGM; and • the DFSA in the DIFC.
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