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ABU DHABI: The Abu Dhabi Securities Exchange (ADX) will introduce on 4 March 2021 a “Trade at Last” session, enabling investors to trade ADX-listed securities at their closing price during a 5-minute period at the end of the trading day. The initiative is part of the exchange’s ‘ADX One’ strategy to widen the range of its services and products and increase market liquidity.
The mechanism, which is active between 1.55pm and 2pm, allows market participants to adjust any imbalances they may have following the closing auction. Market makers and liquidity providers may use “Trade at Last” to net their positions and fund managers will benefit from being able to trade at prices used for their end-of-day published NAV (net asset value).
Mr. Abdullah Salem Al Neaimi, Acting Deputy Chief Executive of Abu Dhabi Securities Exchange said: “ADX’s role is to ensure a seamless connection between investors and issuers in a vibrant marketplace. We are rolling out a series of initiatives to enhance liquidity and make trading easy and convenient, in line with global best practice. The closing auction is a significant liquidity event in the trading cycle and Trade at Last will provide market participants with greater flexibility to achieve their tactical aims.”
In the next three years, ADX plans to grow market capitalisation to more than AED1.5 billion through its new ‘ADX One’ strategy, which includes introducing new products and services and accelerating digital transformation to enhance the customer journey.
Liquidity on the ADX increased significantly in 2020, with the value of traded securities rising by 28% to AED72.8 billion. The number of foreign investors on ADX grew by 38% in 2020 while the value of shares they traded rose by 6.5% to AED 62.6 billion. The value of securities traded by institutions rose 35.6% to AED 111.1 billion last year. Also in 2020, the actual and active daily investors who executed trades on the exchange increased to 34% compared to the year before.
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Abu Dhabi Securities Exchange
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. On 17th March 2020, ADX was converted from a “Public Entity” to a “Public Joint Stock Company PJSC” pursuant to law No. (8) of 2020. ADX is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
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). ADX is the second largest market in the Arab region and its strategy of providing stable financial performance with diversified sources of incomes is aligned with the guiding principles of the UAE “Towards the next 50” agenda. The national plan charts out the UAE’s strategic development scheme which aims to build a sustainable, diversified and high-value added economy that positively contributes to transition to a new global sustainable development paradigm.
© Press Release 2021
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