He said the BFX, which is located in the Bahrain Financial Harbour, has a unique business model which will also lead to a significant fund flow from both institutional and retail customers across the whole region.

The exchange will be rolled out in two phases - its Islamic division (Bait Al Bursa) will start its e-Tayseer platform on Feb. 7, 2011, followed by its conventional platform on March 7, 2011.

"The BFX, which is licensed and regulated by the Central Bank of Bahrain, will offer unique benefits to its users. The multi-asset internationally accessible platform provides end users opportunities to manage risk, raise capital and to invest," Hewett told Arab News in an exclusive interview.

The two-phased approach is designed to give market participants sufficient time to market and develop business in the BFX's Islamic sector in advance of launching the conventional market, he said.

Hewett said the BFX platform for multi-asset class trading will offer market participants the ability to trade multiple asset classes through its sophisticated plug-and-trade trading floor and modern facilities.

The BFX product portfolio can be split into three main categories: Cash instruments, derivatives instruments and Shariah-compliant financial instruments.

When it launches, the exchange will have 10 tradable products on its conventional platform, including commodities, currencies and equity indices as well as e-Tayseer on its Islamic platform.

Other products will be rolled out in due course, he said.

The BFX, which is a member of the Futures and Options Association (FOA), the International Islamic Financial Market (IIFM), the Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI), and a member of the Associations of Futures Markets (AFM), is supported by the Financial Technologies Group (FT Group) network of 10 exchanges, considered to be the world's second largest. This extensive network connects fast-growing economies of Africa, Middle East, India and Southeast Asia.

When asked what will be the role of the Bahrain Financial Training Institute (BFX-TI), which was set up by the BFX, Hewett said, "this institute's internationally-accredited programs cater to all, not only Bahrainis. Being in Bahrain, however, we take pride in empowering Bahrainis. We actively recruit top Bahraini talent and train them on the various aspects of the business of exchanges."

The BFX-TI will also supply much-needed financial practitioners to the market, making Bahrain the leading supplier of financial talent to the region.

The BFX-TI also trains people in various soft skills such as management, leadership, and so on, he added.

While comparing the BFX and the London Metal Exchange (LME) - the world's premier metals and industrial materials exchange, Hewett, who worked earlier as deputy commercial director of the LME, said the LME is specialized in futures and options contracts for non-ferrous metals in products such as  zinc, copper, aluminum, tin, nickel and so on.

The BFX is a much broader concept because it is a multi-class asset exchange, allowing members to trade in a variety of cash instruments, derivatives, structured product and Shariah-compliant financial instruments while being also internationally accessible.

Being a multi-class asset exchange, the BFX allows users real portfolio diversification and risk management.