ADX performs technical improvements on the “Circuit Breaker” system

Dubai: In a step through which it aims to enhance its status on the local and regional level, Abu Dhabi Securities Exchange will apply the developed version of the Circuit Breaker System starting from February 18.

The improvements on the circuit breaker system based on the new method offer many positive features such as the existence of two levels of breaker circuit and the entering of the security in the price bid period along with the ability to enter new orders and modify the previous ones. This will ensure instantaneous effectiveness and transparency of all parties in the trading process, the bourse said in a statement.

In this context, Rashid Al Baloushi, CEO of Abu Dhabi Securities Exchange, said that the Exchange’s Management spares no effort to introduce more improvements and updates to the system in accordance with the best international standards adopted by global exchanges and in consideration of the Exchange’s strategy which stems out from Abu Dhabi Government Vision 2030.

Moreover, Al Baloushi emphasised that establishing more advanced and transparent mechanisms actually enhances the Exchange’s ability to attract investment, and that securing stability for the daily trading system will grant the trading activity more objectivity. Due to this feature, research and studies advise those in charge of financial markets to seek out organisational mechanisms, practices and regulations that ensure the efficiency, credibility and transparency of all the parties involved in the trading process in those markets.

The first level of the circuit breaker system will be activated only once when the security drops below 5 per cent as it enters a price bid period for 5 minutes. In case the security drops more than 9%, then the second level will be activated as it enters a 10-minute price bid period and for one time only. All this will be during the continuous trading session from 10:00 to 13:50, and will be 100% automatic process through a precise organisational coordination in the trading program extreme.