ADX’s implementation of Technical Short-Selling Services is aimed at raising market turnover and attracting more foreign investors participation and improve liquidity and hedging. Technical Short-Selling is the sale of securities which are not owned by the sellers, and it aims to achieve profits through the price variations. Al Ramz strives to bring the highest global market practices to United Arab Emirates, and technical short selling will enhance the company’s product services focusing on superior Customer experiences. ADX celebrated by ringing the bell at the market opening yesterday.
That was attended by Mr. Rashed Al Blooshi, Chief Executive of ADX and Mr. Mohammad Al Mortada Al Dandashi, Managing Director of Al Ramz Corporation Investment & Development PJSC and other representatives of both sides.
Mr. Rashed Al Blooshi, Chief Executive of ADX stated “We are delighted to have granted Al Ramz Capital the License for Technical Short-Selling, a service which comes within the framework of our strategic goals, which are increasing market cap and product range and attracting and activating a wider range of investors via diversifying investment instruments in order to increase the level of liquidity to match global markets. It also comes in alignment with Abu Dhabi’s 2030 Economic Vision, to enhance the Emirate’s investment environment and attract more foreign investors. Al Ramz Capital represents an ideal partner for us to work with as one of the first brokerages to offer this service. We look forward to working with them and bringing more brokerage firms on board with the Technical Short Selling product in the near future.”
Mr. Al Blooshi added: “As the first market in the region to offer Technical Short Selling service, we have set clear laws, rights and obligations governing transactions for brokers and investors alike. In line with our commitment to transparency, information regards all transactions under the service will be published on a daily basis via our website. This will help give investors the confidence to invest their savings in the new service, knowing it sits within an advanced legal framework characterised by trust, fairness and open disclosure.” “We are always keen to be among the first in introducing new investment products that will contribute to the development of our stock markets.” said Mohammad Al Mortada Al Dandashi, Managing Director of Al Ramz Corporation Investment & Development PJSC, “We strongly believe that activating advanced financial instruments and trading mechanisms like short-selling will ultimately help balance the trading forces in our capital markets. Such tools play an essential role in improving market efficiency, and represent an effective way for specialized institutions to develop hedging strategies, as well as structured products. This is another milestone in our journey and we will continue to be pioneers in introducing new licenses to our customers that will assist them to diversify their investments”.