ADX launches technical short selling

abu dhabi — Abu Dhabi Securities Exchange (ADX), the region’s leading financial market, on Tuesday announced the launch of its latest investment service ‘technical short selling’ (TSS), an addition to the existing suite of services and products provided by ADX to investors through brokerage firms.

The launch of this new service falls in line with ADX’s strategy to increase liquidity levels as well as diversify investment and hedging instruments in order to better attract specialised foreign investors. ADX is the first market in the Gulf region to offer this service. The TSS service allows the investor to sell stocks that they don’t own, but can afford within the applicable settlement period (T+ 2), in order to achieve profit buying the stock back if the value goes down.

Rashed Al Blooshi, chief executive officer of ADX, confirmed the adoption of an integrated regulatory network and structure to help protect against fraudulent practice, and ensure a fair and secure trading environment in accordance with best international practices.

Al Blooshi said: “Abu Dhabi Securities Exchange is keen to define a set of clear laws, rights and obligations governing transactions under the technical short sale service for brokers and investors alike. We are committed to transparency, with an absolute commitment to publish all information related to the service on a daily basis via our website. This will give investors the confidence to invest their savings in the new service”

— business@khaleejtimes.com