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Abu Dhabi Securities Exchange (ADX) has concluded its awareness campaign on technical short-selling, targeting investors and interested parties in Abu Dhabi, Fujairah, Sharjah, Ras al-Khaimah, and Al-Ain.
The campaign, which took place between from 12th to 30th of July, comes as part of ADX’s continuous efforts that started earlier this year, with participation from Securities and Commodities Authority (SCA), targeting investors, brokerage companies, and local funds.
ADX Chief Executive, Rashed Al Blooshi, stated that these awareness campaigns were launched to empower the new services and instruments in ADX with sufficient digital culture and efficiency. Such services are adopted in leading markets and have positive rewards on dealers and companies alike, as well as all parties working in the financial sector.
The technical short-selling service that will be gradually applied in ADX during 2017, allows clients to sell shares they don’t own yet committed to provide during the settlement period – so they gain profits from price differences if the shares prices go down. The short-selling service will be available to brokers and market makers as well as any side that ADX finds suitable. It reduces speculative trades and increases the level of liquidity in the market and enables greater margin of profits.
ADX will be launching the technical short-selling service by extending the training period for brokers, local funds, and market makers – all in order to ensure full understanding and readiness among those parties. Furthermore the extended training period aimed at replacing speculative trading for long-term investments that will subsequently increase liquidity in the market.
The awareness campaign included seminars targeting investors and interested parties under the title “Technical Short-Selling”. The seminars commenced on July 12th in Abu Dhabi in ADX Auditorium; followed on July 17th in Fujairah Chamber of Commerce and Industry; July 18 in Sharjah Chamber of Commerce and Industry; and then Ras al-Khaimah Chamber of Commerce and Industry on July 19th , while the last seminar took place on July 30th in Al-Ain Chamber of Commerce and Industry.
