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Abu Dhabi / Emirates Business
In a bid to develop its operations and launch strategic initiatives that contribute to the Abu Dhabi Economic Vision 2030, Abu Dhabi Securities Exchange (ADX), the region’s leading financial market, announced an upgrade in the tick size for stocks of companies with a share price of less than 1.00 AED. This announcement is in line with ADX’s efforts to enhance market liquidity and increase investments in the market. This new process will take place starting September 2.
ADX has applied a new rule on tick size to apply a five decimal fraction as follows: 0.0001 AED for securities within the price range of AED 0.1 to 0.99 AED; AED 0.01 for a price range of AED 1 to AED 9.99; AED 0.02 for a price range of AED 10 to AED 49.98, AED 0.05 for securities within the price range of AED 50 to 99.95, and AED 0.10 for securities at AED 100 and above.
ADX has upgraded the tick size based on a detailed study of listed companies’ performance and market trade activity. There are 17 companies listed on ADX with a share value of less than AED 1, with trade values reaching AED 3 billion, representing 23% of the trade value on the Exchange from the beginning of the year and up to mid-May 2018.