Emirates News Agency – Abu Dhabi Securities Exchange, the trading mechanism depends on the closing price


ABU DHABI, 3rd March, WAM – Abu Dhabi Securities Exchange announced the addition of a trading session to the closing price, effective March 4, 2021, to enable investors to trade securities listed on the market at the closing price for a period of five minutes at the end of the trading day.

This initiative is part of the “ADX One” strategy adopted by the market to expand its services and products and enhance its liquidity.

The trading session continues on the closing price from 1.55 to 2 pm, and allows investors to adjust orders after the pre-closing bid. Market makers and liquidity providers can use the trading mechanism on the closing price to protect their positions, and investment fund managers will also benefit from this session as it opens the way for them to buy and sell securities in the market based on the net asset value of their funds at the end of the day.

Abdullah Salem Al Nuaimi, Acting Executive Vice President of Abu Dhabi Securities Exchange, said: “The role of the Abu Dhabi Securities Exchange is to ensure smooth communication between investors and issuers within a dynamic market and we are launching a set of initiatives to improve liquidity and make trading easier and more convenient in line with best practices. Global and pre-closing bidding is considered important to enhance liquidity in the trading cycle. Therefore, trading on the closing price provides investors with greater flexibility to achieve their tactical goals. ”

Abu Dhabi Securities Exchange plans to double its market value over the next three years from 750 billion dirhams at the end of 2020, following the adoption of the “ADX One” strategy, which includes launching new products and services and accelerating the pace of digital transformation to enhance the customer experience.

Abu Dhabi Securities Market liquidity increased significantly in 2020; Where the value of securities traded increased by 28% to reach 72.8 billion dirhams.

The number of foreign investors in the market increased by 38% in 2020, while the value of the shares they traded increased by 6.5% to reach 62.6 billion dirhams.

The trading volume of institutions also increased by 35.6%, to reach the value of their transactions last year to 111.1 billion dirhams, and the percentage of the daily number of actual investors during the year 2020, executing a sale and / or purchase, in the market increased to 34% compared to the previous year. Preceded him.

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WAM / Abdel Nasser Moneim


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