UNITED ARAB EMIRATES: ADX Introduces Trade at Last session for Trading Securities at Closing Price

Friday March 5 2021

On 3^rd March 2021, Abu Dhabi Securities Exchange (ADX) announced that ADX will introduce on 4^th March 2021 a “Trade at Last” session, enabling investors to trade ADX-listed securities at their closing price during a 5-minute period at the end of the trading day. The initiative is part of the exchange’s ‘ADX One’ strategy to widen the range of its services and products and increase market liquidity.

The mechanism, which is active between 1.55pm and 2pm, allows market participants to adjust any imbalances they may have following the closing auction. Market makers and liquidity providers may use “Trade at Last” to net their positions and fund managers will benefit from being able to trade at prices used for their end-of-day published NAV (net asset value).

In the next three years, ADX plans to grow market capitalisation to more than AED1.5 billion through its new ‘ADX One’ strategy, which includes introducing new products and services and accelerating digital transformation to enhance the customer journey.

Liquidity on the ADX increased significantly in 2020, with the value of traded securities rising by 28% to AED72.8 billion. The number of foreign investors on ADX grew by 38% in 2020 while the value of shares they traded rose by 6.5% to AED 62.6 billion. The value of securities traded by institutions rose 35.6% to AED 111.1 billion last year. Also in 2020, the actual and active daily investors who executed trades on the exchange increased to 34% compared to the year before.

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