More training needed before launching technical short selling: ADX

ABU DHABI, — ADX has postponed the launch of technical short selling pending further training for traders, investors and brokers.

According to a survey conducted by ADX recently dealers, brokers, and investors, in order to secure maximum benefits, have been calling, over the recent period, for further training and practice on the state-of-the-art technologies and innovations adopted by Abu Dhabi Securities Exchange.

“The survey, which covered brokers, dealers, board members of the listed companies, and investors, drives home the fact that more training is needed in order to secure the best results of the expansion process adopted”, said Rashid Al Blooshi, CEO, ADX.

According to ADX CEO, brokers, investors and dealers are in need of intensive training on new technologies adopted by the market and therefore technical short selling will not start by the second quarter of the year as scheduled before, but further preparations will be conducted to ensure that investors are well versed with the ins and outs of this type of selling.

Technical short selling allows the investors to sell stocks that they don’t own, yet they are committed to afford during the settlement period. The aim is to gain profits from the price difference if the stock value goes down. This service will benefit brokers and market traders alike as well as any other party ADX deems suitable.

“ADX has been established as a transparent market dedicated to the greater good of the UAE economy by adopting sophisticated control standards that ensure safety of trading and investment awareness,” Al-Blooshi added.

ADX launched a series of innovative products at GITEX2016, including Blockchain Technology, SAHMI services, the smart watch, as well as the new ADX website. In addition, it conducted a specialised training session for university students on advanced investment techniques.

Realising Abu Dhabi Economic Vision 2030 entails a collaborative environment based on innovation and best utilisation of resources, including the newly introduced innovative services. ADX CEO maintained. “This is what makes ADX in a constant dialogue with all dealers in order to meet their demands after ensuring sufficient training. I am delighted to see the brokers are well-prepared to educate their staff on technical short selling that will provide added value to the market” said Al Blooshi.

Source: Emirates News Agency