Abu Dhabi to Permit Short Selling in Attempt to Boost Liquidity
- ADX bourse is planning technical short selling by early 2017
- Investors see challenge in educating investors on instrument
Why Abu Dhabi Plans to Permit Short Selling
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Abu Dhabi is poised to introduce services facilitating short-selling next year as it seeks to boost trading volume and attract foreign investors to the illiquid market.
ADX, as the local exchange is known, is conducting meetings with brokerages in the United Arab Emirates ahead of introducing a so-called technical short-selling service early in 2017, according to a statement posted on the bourse’s website on Monday. The step would make Abu Dhabi the first stock market in the six-nation Gulf Cooperation Council to permit the sale of securities owned by another investor.