Officials at the signing ceremony held in Abu Dhabi.
Daman gets TSS service licence from Abu Dhabi bourse
DUBAI, July 28, 2018
Abu Dhabi Securities Exchange (ADX) has awarded Daman Investments, a leading UAE-based fund manager, the licence to provide technical short selling services to its clients, thus making it the fifth company on the exchange to do so.
The move comes in line with ADX's strategy to enhance the UAE’s investment environment and support its sustainable economic growth, said the exchange in the statement.
The announcement was made during a bell ringing ceremony on ADX’s trading floor, in the presence of representatives and executive management from both sides.
The TSS service allows investors to short stocks listed on ADX by selling borrowed shares that they don’t own, but can afford within the applicable settlement period (T+2), in order to achieve profit, buying the stock back if the value goes down.
Rashed Al Balooshi, the chief executive of ADX, celebrated the joining of Daman Investments to the list of companies providing TSS service on the exchange and emphasised the importance of continually modernising, enlarging and upgrading the market within a secure environment.
"Short selling is an advanced step not only as a hedging instrument, but also as a way of enhancing investment liquidity on the long run," stated Al Balooshi.
According to him, the expectation for new traders was to find trusted brokers who could assist them in understanding and trading in an enabling, fair, sustainable and most importantly secure environment.
"This is why the TSS service that we offer comes with clear laws, rights and obligations governing transactions for brokers and investors alike, and information regarding all transactions under the service are published on a daily basis via the ADX website," explained Al Balooshi.
Shehab Gargash, the chairman of Daman Investments, said: "In an attempt to enhance its position as a leader in the brokerage services in the UAE, Daman Securities is so delighted to obtain a licence for technical short selling from Abu Dhabi Securities Exchange."
"This step will help us improve and develop our services to better serve the local market. Further, we will seek to deepen our relations with the fast-growing ADX," he added.-TradeArabia News Service
