ADX introduces new tick sizes Sunday

Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) has started trading with the new tick size for companies’ stocks on Sunday with a share price of less than AED 1.

 The new system has been launched after successfully passing all tests of the internal systems and operational procedures related to operating tick sizes, the ADX highlighted in a statement.

The new tick sizes consist of five units, including AED 0.0001 for shares within the price range of AED 0.10 to AED 0.99, AED 0.01 for a price range of AED 1 to AED9.99, AEA 0.02 for a price range of AED 10 to AED 49.98, AED 0.05 for shares within AED 50 to AED 99.95, and AED 0.10 for shares at AED 100 and above.


Market liquidity

Developing the ADX’s operations and launching strategic initiatives will help to achieve Abu Dhabi Vision 2030, CEO of the ADX Rashed Al Beloushi said.

 “Introducing the upgrade on the tick size will further enhance the pricing model, as well as strengthen market liquidity by providing greater value to current and future investors,” Al Beloushi added.


Detailed study

The ADX upgraded the tick size based on a detailed study conducted earlier this year until mid-May of listed companies’ performance and market trading activity.

The study revealed that 17 listed-companies with a share value of less than AED 1 and trading value of up to AED 3 billion, accounting for 23% of the total trading value on the exchange at the time.

Another survey among brokers on the upgrade in tick size was conducted, upon which 70% of brokerage firms were in favour of the upgrade.

Mubasher Contribution Time: 02-Sep-2018 06:09 (GMT)
Mubasher Last Update Time: 02-Sep-2018 06:09 (GMT)