Abu Dhabi Securities Exchange Performs Technical Improvements On The “Circuit Breaker” System - Rashid Al Baloushi: “A Step That Reinforces The Exchange’s Status Both Locally And Regionally”

In a step through which it aims to enhance its status on the local and regional level, Abu Dhabi Securities Exchange will apply the developed version of the Circuit Breaker System starting from Thursday, February 18^th, 2016. The improvements on the Circuit Breaker System based on the new method offer many positive features such as the existence of two levels of Breaker Circuit and the entering of the security in the price bid period along with the ability to enter new orders and modify the previous ones. This will ensure instantaneous effectiveness and transparency of all parties in the trading process.

In this context, Rashid Al Baloushi, CEO of Abu Dhabi Securities Exchange, said that the Exchange’s Management spares no effort to introduce more improvements and updates to the system in accordance with the best international standards adopted by global exchanges and in consideration of the Exchange’s strategy which stems out from Abu Dhabi Government Vision 2030.

Moreover, Al Baloushi emphasized that establishing more advanced and transparent mechanisms actually enhances the Exchange’s ability to attract investment, and that securing stability for the daily trading system will grant the trading activity more objectivity. Due to this feature, research and studies advise those in charge of financial markets to seek out organizational mechanisms, practices and regulations that ensure the efficiency, credibility and transparency of all the parties involved in the trading process in those markets.

He also pointed out that the Exchange is currently working on applying the new trading activity program which is considered the result of a continuous effort by the business development team at Abu Dhabi Securities Exchange. The team worked on preparing detailed and planned practical steps in which it relied on extensive studies, statistics and discussions with the dealers in the Exchange as part of the Exchange’s continuous efforts to develop its basic structure in accordance with the best practices in this field.

The team, which possesses the sufficient professional knowledge and experience, also studied the reality of continuous development in financial markets’ work and summarized the needs and requirements that play a major role in developing work mechanisms which in turn help develop its basic structure in accordance with the best practices in this field.

Furthermore, Al Baloushi explained that regarding the Circuit Breaker system, the first level will be activated only once when the security drops below 5% as it enters a price bid period for 5 minutes. In case the security drops more than 9%, then the second level will be activated as it enters a 10-minute price bid period and for one time only. All this will be during the continuous trading session from 10:00 to 13:50, and will be 100% automatic process through a precise organizational coordination in the trading program Extreme.

Al Baloushi concluded his speech by saying that this step shall be followed by other steps that will include more preparations that shall reinforce the Exchange’s readiness to display high dynamics during the time in which it gets affected by the macroeconomic and microeconomic factors in addition to information about the enlisted companies themselves.