ADX extends trading hours and cuts trading commissions by half

Rick Steves

The Dubai Financial Market (DFM) is also extending its trading hours from four hours to five hours daily in compliance with the regulator’s decision.

The Abu Dhabi Securities Exchange (ADX) has announced it has reduced its trading commissions by 50% as the operator also extended trading hours by one hour.

The market will open at 10 am and close at 3 pm from 3rd October, in line with directions of the Securities and Commodities Authority (SCA) and in coordination with various stakeholders.

ADX will cut trading fees in half, from 0.05% to 0.025%, from September 2021 onwards. It is the second fee reduction this year and part of the ADX One strategy to bolster market activity and deepen market liquidity.

Mohamed Ali Al Shorafa Al Hammadi, Chairman of Abu Dhabi Securities Exchange said: “We are very pleased to have been able to answer the call by our investors, issuers, and intermediaries for lower trading commissions and longer trading hours, reflecting increased demand to trade Abu Dhabi’s publicly listed companies. The ADX offers unique, high-growth investment opportunities within a strongly regulated, tax-free, and stable business environment and the extension of our opening will serve to attract increased international investment.”

Saeed Hamad Al Dhaheri, Chief Executive Officer of Abu Dhabi Securities Exchange, commented: “The significant reduction in trading commissions and the extension of our operating hours align ADX with international practices and helps us to realize our ADX One strategy’s main aim of enhancing liquidity and increasing our market capitalization. The fee cuts and extension complement our tireless efforts over the past year to bring the most sought out products and services to issuers and investors. We will continue to nurture liquidity on the exchange as we roll out the ambitious ADX One strategy announced at the beginning of the year.”

The Abu Dhabi Securities Exchange General Index (ADI) has reached 7700 points for the first time on the back of a series of listings and increased participation by international investors, according to ADX, and gained 51% year to date.

The Dubai Financial Market (DFM) is also extending its trading hours from four hours to five hours daily in compliance with the regulator’s decision.

Since the DFM has a large and diversified investor base covering 207 countries with international investors accounting for 48.2% of its trading activities, the move is likely to improve access and liquidity to the market.

International investors represented 18.5% of the market capitalization at the end of June 2021 and accounted for 69% of new investors on DFM.

Hassan Al Serkal, Chief Executive Officer of the DFM said: “The new initiative will further strengthen the leading position of the DFM as a main gateway for investments and attract wider and more diversified categories of investors, especially the international investors who are constantly showing great interest in our market. “the trading hours’ extension will provide investors with more flexibility and larger time span to accomplish their investment activities on the market.”

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