Media ININ Economy We Trust
MEDIA IN, Abu Dhabi, July 26, 2018 (WAM)
The Abu Dhabi Securities Exchange (ADSM) has granted Daman Securities a license to practice and offer technical short sale service to its customers, making it the fifth licensed broker to provide this service in the market.
The announcement came during the celebration of the bell ring in the market in the presence of representatives and members of the executive management of both sides .. This step comes within the framework of the market strategy to improve the investment climate and support sustainable economic growth in the country.
The technical short sale service allows investors to sell securities they do not own but are committed to providing within the “T + 2” settlement period in order to achieve profits resulting from taking advantage of price differentials if prices fall.
Rashid Al Baloushi, Chief Executive Officer of the Abu Dhabi Securities Exchange, affirmed the market’s commitment to developing, expanding and upgrading its services within a secure and stable investment environment.
He explained that the technical short sale service is an advanced investment tools and is an important hedging tool to raise the level of investment liquidity in the long term.
Al Balushi added that the market is aware of the new traders seeking to find reliable brokerage firms that can understand the mechanisms of the market and trading in an environment characterized by fairness in disclosure, transparency and sustainability. In this respect ADX is keen to establish clear laws, rights and obligations that govern transactions in the technical short sale Both brokers and investors with the absolute market commitment to publish all information related to the service on a daily basis via its website.
The market organized special training sessions aimed at brokerage firms, market makers and local funds to familiarize them with the technical short sale service and the frameworks for providing their customers, the positive effects of this service on the customers and the level of liquidity as well as their contribution to enhancing long term savings investment
