Abu Dhabi - Mubasher: The Abu Dhabi Securities Exchange (ADX) will officially begin the technical short selling service early next year, according to a statement.
ADX started conducting meetings with brokerage companies in Abu Dhabi and Dubai in preparation to launching the services.
“This service is part of continuing efforts to modernize, enlarge and upgrade the market. It also aims at diversifying investment instruments in order to increase the level of liquidity to match global markets. This will enable us to attract foreign investors accustomed to these instruments,” said Rashed Al Blooshi, ADX CEO.
Technical short selling allows the investors to sell stocks that they don’t own, yet theyare committed to afford during the settlement period. The aim is to gain profits from the price difference if the stock value goes down, the statement explained.
Brokerage companies will benefit from this service on behalf of their customers, the market maker, as well as any side that ADX finds fit for this service. It was empowered in a gradual application system, hence the market discloses the stocks listed that will be allowed for short selling, Al Blooshi indicated.
According to Al Blooshi, ADX pays attention to surveillance and transparency procedures, which enabled the market to join emerging markets list.
“This efficient system guarantees instant disclosure for all stocks open for short selling, the daily volume, the dates of trading as well as the automatic time of these sales,” he added.
