Abu Dhabi Securities Exchange (ADX) has adopted its new short-term trading product. The product will be made available through brokerage firms approved by the Abu Dhabi Securities Exchange (ADX) and licensed by the Securities and Commodities Authority (SCA) to conduct brokerage activities, within the terms and conditions set by the market to protect investors and stakeholders alike.
ADX made this product available within the framework of its strategy to increase trading volumes and diversify the products available to investors by financing four times the market value of securities purchased from the client provided that the client is committed to selling the securities financed within a period not exceeding three trading days in accordance with the provisions of the regulations. Market positioned on this. One of the conditions associated with the use of this product is that the initial margin, that is, the amount deposited by the client in the short-term trading account in the amount of money or securities before the execution of the purchase order in accordance with the percentage set by the controls, not less than 20% of the value of securities To be purchased in a short-term trading account, and the amount invested should not be less than AED 100,000, even if the purchase order is made with a lower margin.
Khalifa Salem Al Mansoori, Chief Executive Officer of Abu Dhabi Securities Exchange, said: “This product offers an innovative space of freedom for investors of all orientations and specializations, as well as for many investors who are eager to trade to create new investment opportunities. Diversification of available trading methods.
He added that the market's adoption of this service came within the framework of an integrated legislative mechanism and structure, which was keen to ensure a fair and safe investment trading environment, in accordance with international best practices, stressing the market's keenness to adopt the latest laws and financial regulations that will put controls in the dealers and investors The market also publishes all information related to the service through its digital platforms and media publications, within an advanced legal environment, characterized by fairness in disclosure and transparency.
The decision also stipulated that the initial margin should be cash or securities listed on one of the financial markets in the country where the brokerage company has a margin trading license, and that the margin should be deposited in the account for short-term trading.
The main controls of this resolution provide for the protection of investors' rights within a legal environment characterized by fairness in disclosure and transparency, provided that the market issues its decision to approve the brokerage firm's request provided that it meets the conditions, controls and technical standards set by the market. Term with the brokerage firm prior to granting approval.