Dubai – Mubasher: Individual and institutional investors started using technical short selling services largely through Al Safwa Mubasher, revealed CEO Ehab Rashad.
On Tuesday, technical short selling was implemented in the Abu Dhabi Securities Exchange (ADX). Dubai-based Al Safwa Mubasher is the first company to provide technical short selling services on the ADX.
By implementing this service, the ADX aims to enhance liquidity and attract more foreign investors.
Technical short selling entails the sale of securities which are not owned by the sellers, but must be provided in the settlement period T+2, aiming to achieve profits through the prices variation, in case prices decrease.
Al Safwa Mubasher provides technical short selling services through its online trading platform, which allows customers to sign the contracts and start trading, Rashad added.
Customers can implement technical short selling if the offer share price is higher than the last closing price, the CEO noted.
Stock markets experts forecasted previously that technical short selling will diversify investments tools, bolster liquidity, and attract new investors.
