ADX introduces trade at Last session for trading securities at their closing price
Investors can trade ADX securities at their closing price between 1.55pm and 2pm.
Abu Dhabi: The Abu Dhabi Securities Exchange (ADX) will introduce on March 4, 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).
“ADX’s role is to ensure a seamless connection between investors and issuers in a vibrant marketplace. We are rolling out a series of initiatives to enhance liquidity and make trading easy and convenient, in line with global best practice. The closing auction is a significant liquidity event in the trading cycle and Trade at Last will provide market participants with greater flexibility to achieve their tactical aims,” said Abdullah Salem Al Neaimi, Acting Deputy Chief Executive of Abu Dhabi Securities Exchange.
In the next three years, ADX plans to grow market capitalisation to more than Dh1.5 billion through its new ‘ADX One’ strategy, which includes introducing new products and services and accelerating digital transformation to enhance the customer journey.