UAE exchange sees Al Ramz Capital conduct first short selling trade via new facility
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UAE exchange sees Al Ramz Capital conduct first short selling trade via new facility 16 October 2020Abu Dhabi Reporter: Drew Nicol
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Al Ramz Capital, a United Arab Emirates (UAE) brokerage, has become the first firm to execute a covered short sale and stock borrow via Abu Dhabi Securities Exchange’s (ADX) newly-launched facility.
Earlier this week, ADX unveiled a revised and enhanced securities lending rules framework alongside a new covered short selling facility.
Yesterday, Al Ramz Capital, a subsidiary of Al Ramz PJSC, a Dubai-based investment firm that offers asset management, market making, liquidity providing, and brokerage services became the first firm to utilise the service.
Details of the trade and other counterparts are not publicly available.
Dhafer Sahmi Al-Ahbabi, chair of Al Ramz PJSC, describes the occasion as “an important step forward in the development of regional capital markets”.
“We are proud to be a part of this development and we commend ADX for achieving this milestone,” he adds.
Also commenting on the first trade, H.E. Mohamed Ali Al Shorafa Al Hammadi, chairman of ADX, says he is pleased to gain buy-in for the facility from one of UAE’s "top brokerage firms".
“The launch of the covered short selling service is part of the exchange’s strategy to support the diversification of investment tools and providing investors with a broader range of hedging mechanisms,” he explains.
“By doing so, it will attract a new segment of specialised and experienced investors, driving both liquidity and trading volumes.”
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