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The Abu Dhabi Securities Exchange (ADX) announced that Daman Securities has obtained a license to exercise and offer a technical short sale service to its customers, thus becoming the fifth broker licensed to provide this service on the market.
The announcement was made during the celebration of the bell on the market in the presence of representatives and members of the management of both parties. This approach is part of the market strategy to improve the investment climate and support the country's sustained economic growth.
Short selling technical service allows investors to sell securities which they do not own but which they agree to provide in the settlement period "T + 2" in order to generate profits through the use of price differentials.
Rashid Al Baloushi, general manager of ADX, said: "We are delighted that Daman Securities has joined the group of licensed brokers to provide technical short selling services in the market.
The short selling technical service is considered an advanced investment tool and an important hedging tool that improves the level of long-term investment liquidity.
Al Balushi added that the market was aware of new traders looking for reliable brokerages that could understand market mechanisms and negotiate in an environment characterized by transparency, transparency and sustainability. A technical exposure to both brokers and investors with the absolute commitment of the market to publish daily on its website all information related to the service.
Shahab Gargash, president of Daman Investments, said that while Daman Securities is strengthening its position as a leading brokerage firm in the United Arab Emirates, it is licensed to practice and offer technical sales from Abu Dhabi market. This contributes to the advancement of services and development to better serve the local market and work towards deepening its relationship with the growing market.
Nabil Al Rantissi, Managing Director of Daman Investment Company, emphasized the company's concern to continually develop the services provided to its clients in accordance with its strategic plans to maintain its position in the main market companies since its Established in 2002. That the acquisition by the company of the short sale license as the fifth broker in the Abu Dhabi market is a confirmation of its successful policies.
The Abu Dhabi Securities Exchange has adopted a series of measures to regulate technical selling and technical trading, including the suspension of trading in a particular security if its benchmark price falls by 5% or if the amount of short sales reached 10%. As a whole, as part of the ongoing market effort to strengthen the legal, legislative and economic environment governing service operations.
The marketplace has adopted a trading framework defining the trading mechanism of the Short Selling Technical Service, in which brokerage firms are required to disclose tradable securities trades and technical short selling as well as the terms and conditions of the sale. # 39; s approval.
Rashed Al Baloushi explained that the application of the procedures and regulations of Abu Dhabi Securities Exchange in the management of technical short sale operations guarantees the immediate disclosure of all shares traded within the service. This raises investor confidence and encourages them to invest their savings within them because of their confidence in the advanced legal framework based on trust and fairness and disclosure, which are the general principles that ADX is committed to applying and adopting.
Abu Dhabi Securities Exchange is the first stock exchange to offer technical short selling in the Gulf region, as part of the strategy of diversification of the mechanisms of investment and hedging and increased liquidity d & # 39; investment. Specialists and practitioners of modern investment tools for the stock markets as well as a part of the market commitment to develop its operations and to launch strategic initiatives that contribute to the realization of Abu Dhabi Economic Vision 2030.
The market organized specific trainings for brokers, market makers and local funds to familiarize them with the short sale technical service and their presentation frameworks, the positive impact customer service and the level of liquidity.
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- United Arab Emirates
Stock Exchange
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