Abu Dhabi, United Arab Emirates (UAE) - Monday, 31st July 2017:

Abu Dhabi Securities Exchange (ADX) has concluded its awareness campaign on technical short-selling, targeting investors and interested parties in Abu Dhabi, Fujairah, Sharjah, Ras al-Khaimah, and Al-Ain.

The campaign, which took place between from 12th to 30th of July, comes as part of ADX’s continuous efforts that started earlier this year, with participation from Securities and Commodities Authority (SCA), targeting investors, brokerage companies, and local funds.

ADX Chief Executive, Rashed Al Blooshi, stated that these awareness campaigns were launched to empower the new services and instruments in ADX with sufficient digital culture and efficiency. Such services are adopted in leading markets and have positive rewards on dealers and companies alike, as well as all parties working in the financial sector.

The technical short-selling service that will be gradually applied in ADX during 2017, allows clients to sell shares they don’t own yet committed to provide during the settlement period – so they gain profits from price differences if the shares prices go down. The short-selling service will be available to brokers and market makers as well as any side that ADX finds suitable. It reduces speculative trades and increases the level of liquidity in the market and enables greater margin of profits. 

ADX will be launching the technical short-selling service by extending the training period for investors, brokers, local funds, and market makers – all in order to ensure full understanding and readiness among those parties.  Furthermore the extended training period aimed at replacing speculative trading for long-term investments that will subsequently increase liquidity in the market.

The awareness campaign included seminars targeting investors and interested parties under the title “Technical Short-Selling”. The seminars commenced on July 12th  in Abu Dhabi in ADX Auditorium; followed on July 17th  in Fujairah Chamber of Commerce and Industry; July 18 in Sharjah Chamber of Commerce and Industry; and then Ras al-Khaimah Chamber of Commerce and Industry on July 19th , while the last seminar took place on July 30th in Al-Ain Chamber of Commerce and Industry.

-Ends-

About Abu Dhabi Securities Exchange (ADX)
Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management.  The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions.

These functions are:

  • Provide opportunities to invest savings and funds in securities in order to benefit national economy.

  • Ensure the soundness and accuracy of transactions and to ensure the interaction between demand and supply in order to determine prices.

  • Protect investors through establishing fair and proper dealing principles between various investors.

  • Impose stringent controls over securities transactions to ensure sound and conduct procedure.

  • Develop investment awareness by conduction studies and issuing recommendations in order to ensure that savings are invested in productive sectors.

  • Ensure financial and economic stability and develop trading methods in order to ensure liquidity and stability of prices of Securities listed on the market.

    ADX is a market for trading securities; including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA).

    At the end of 2016, ADX had 71 listed securities with a market capitalization of AED 475 billion (USD 129 billion).  Those securities include 66 public joint stock companies, 2 private joint stock companies, 1 Exchange Traded Fund (ETF), 1 Abu Dhabi Government bond, and 1 convertible bond.   ADX listed companies are allocated in nine sectors; Banking, Real Estate, Consumer Staples, Investment and Financial Services, Industrial, Telecommunication, Services, Energy, and the Insurance sector. 

    ADX allows for investors to trade through any of the registered brokerages at the exchange through advanced electronic automated services. ADX has also signed a number of agreements with major financial institutions to provide for custody services, including renowned international corporations; namely the National Bank of Abu Dhabi (NBAD), HSBC, Standard Chartered, Deutsche Bank and Citi Banking Group.

    ADX goals are in line with Abu Dhabi Government Economic Vision 2030.  The 2030 economic plan plays a vital role in ADX strategy since it places the financial market in the context of economic and social development.  The development would be through diverting savings towards investment in the various economic sectors and developing the financial infrastructure of Abu Dhabi to transform the emirate into one of the leading finance and services center in the region.

    In 2014, ADX was upgraded to ‘Emerging Market’ status by both MSCI index (Morgan Stanley Capital International) and S&P Dow Jones, thus greatly increasing the likelihood of inward global investment flows. ADX was already classified as an Emerging Market by FTSE in 2009 and in 2011 by S&P and Russell Investments. 

    In 2015, ADX won the Most Innovative Exchange GCC 2015 Award.  The award, given by Capital Finance International, celebrates achievement, innovation from an international perspective, recognizing organizations with innovative technology products backed by strong management, excellent service standards and sound business models. Capital Finance International is a leading print journal and online resource reporting on business, economics, and finance.

    For more information, please contact:
    Abdulrahman Saleh ALKhateeb
    Manager of Corporate Communication & Digital Marketing 
    Marketing & Corporate Communication Department
    Abu Dhabi Securities Exchange
    Tel: 00971 (2) 6128774
    Mobile: 00971 (50) 6689733
    Email: ALKhateebA@adx.ae

    • © Press Release 2017