Starting from March 4th and for 5 minutes at the end of the trading day
Abu Dhabi Securities Exchange depends on the closing price trading mechanism
The market seeks to expand its services and enhance its liquidity.
Photography: Eric Arazas
The Abu Dhabi Securities Market announced the addition of the trading session to the closing price, starting from the fourth of March 2021, to enable investors to trade securities listed in the market at the closing price, for a period of five minutes at the end of the trading day.
In a statement, the market stated that this initiative is part of the ADX One strategy that ADX One is adopting to expand the range of its services and products and enhance its liquidity.
According to the statement, the trading session continues on the closing price from 1:55 pm to 2 pm, and allows investors to adjust orders after the pre-closing bid.
Market makers, and liquidity providers, can use the trading mechanism on the closing price to protect their positions. Fund managers will also benefit from this session, as it opens the way for them to buy and sell securities in the market, based on the net asset value of their funds at the end of the day.
The Acting Executive Vice President of Abu Dhabi Securities Market, Abdullah Salem Al-Nuaimi, said that the role of "Abu Dhabi Securities" is to ensure smooth communication between investors and issuers within a vital market.
He added: “We are launching a set of initiatives to improve liquidity, and make trading easier and more convenient in line with international best practices,” pointing out that pre-closing price bidding is important to enhance liquidity in the trading cycle, and therefore trading on the closing price provides investors with flexibility. Greater to achieve their tactical goals.
According to the statement, market liquidity has increased significantly in 2020;
The value of securities traded increased by 28% to reach 72.8 billion dirhams.
The number of foreign investors increased by 38%, while the value of the shares they traded increased by 6.5% to reach 62.6 billion dirhams.
Institutional turnover increased by 35.6%.
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