Abu Dhabi – Mubasher: Abu Dhabi Securities Exchange (ADX) has approved Pattern Day Trader (short-term trading) earlier this week which will be available for clients through brokerage companies licenced by the ADX and the Securities and Commodities Authority (SCA).
This move aims to draw more investors to the market, raise volumes of investment, and boost the market’s pace through providing “a four-fold increase on investment capital, as the return on investment increases, for up to three trading days,” according to a statement on Monday.
Regulations stipulate that the initial margin should be at least 20% of the value of securities to be bought in the short-term trading accounts.
In addition, the trade value has to be at least AED 100,000, “even if the purchase order was made with a lower margin.”
“The Pattern Day Trader is based upon a modern, forward-looking, and innovative global approach to finance which has high levels of transparency,” CEO of ADX, Khalifa Salem Al Mansouri, said.
Moreover, guidelines of ADX and SCA include that “the initial margin should be cash or securities listed on one of the UAE’s financial markets where the brokerage company has a licence to trade with margin.”
