Abu Dhabi exchange waives trading commission fee on all listed securities

Move is expected to increase small trades by individual investors

  
An investor monitors a stock exchange information screen at the ADX Abu Dhabi Securities Exchange stock market Image used for illustrative purpose

An investor monitors a stock exchange information screen at the ADX Abu Dhabi Securities Exchange stock market Image used for illustrative purpose

REUTERS/Stringer .

The Abu Dhabi Securities Exchange (ADX) has waived its minimum commission fee on trades in all listed securities starting Tuesday.  

The decision follows the announcement on Saturday of a 50 percent reduction in trading commissions along with an extension of market opening hours by one hour from October.

These initiatives are part of the “ADX One” strategy announced at the beginning of this year, which aims to bolster activity and deepen liquidity on the exchange, the exchange said in a statement.

Saeed Hamad Al Dhaheri, Chief Executive Officer of ADX, said: "By waiving the minimum fee and reducing commission rates on all listed securities, we are providing more cost-effective trading for individual investors, ensuring that they benefit from the investment opportunities available to institutional investors. By increasing liquidity as well as broadening our offering of products and services, ADX will become an even more attractive market.”

The exchange expects the removal of the minimum commission fee will facilitate higher volumes of small trades, typically undertaken by individual investors.

The previously announced cut in trading fees to 0.025 percent from 0.05 percent, which will take effect on 1 September, is the exchange’s second commission cut in 2021, and the third in three years.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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