SCA, ADX seminar highlights regulations on short-selling

Abu Dhabi / WAM

A seminar on disseminating awareness about short selling regulations has been organised recently by the Securities and Commodities Authority (SCA), in collaboration with the Abu Dhabi Securities
Exchange (ADX).
The seminar is part of SCA’s efforts to enhance investors’ knowledge of
financial mechanics and systems that are conducive to optimising trading performance and enlarge and upgrade the market in line with best international standards and practices.
The seminar, which brought together a large number of brokers, financial analysts and trading managers in brokerage companies operating in the UAE, shed light on short selling techniques and
regulations.
Short selling is the practice of selling borrowed shares in the hope of buying them back later at a lower price, returning them to the original owner and keeping the difference.
A presentation on short-selling mechanics was conducted by Dr Monzir Barakat, an SCA consultant, where he elaborated on the regulations that allow brokers to short sell borrowed securities under a guarantee provided by the broker to return them back to the original owner and keeping the difference upon settlement.
Speaking at the seminar, Omar Al Sirkal, Head of the Market Operations and Surveillance Department at ADX, highlighted the new regulations adopted by ADX to modernize, enlarge and upgrade the market and in the same time ensure surveillance and transparency procedures, which have enabled the market to join emerging markets list.