Stimulus: ADX cuts its trading commission by up to 90%

By DG Staff

ABU DHABI 1 July 2019: Abu Dhabi Securities Exchange (ADX) announced that it is reducing its trading commission fees starting 1st of July 2019 thus making ADX among the Mena region’s least expensive stock markets with regards to trading commissions.

This initiative is designed to reduce costs on investors, build confidence, increase liquidity, as well as attract more investors into the Exchange.

The new initiative not only reinforces ADX’s competitive position, it is also a key step towards achieving the Ghadan 2021 plan’s objective of removing barriers and lowering the cost of doing business in Abu Dhabi.

Khaleefa Al Mansouri – ADX Acting Chief Executive said: “Through this initiative and the introduction of other investment opportunities, the Abu Dhabi Securities Exchange (ADX) is providing additional incentives for both local and international investors to invest on the Exchange providing liquidity into the market and helping to finance listed companies’ projects which will support the of expansion their business.”

The ADX is reducing its trading commission with a range from 50% up to 90%. ADX cost for annual transactions of less than Dh250 million will be 5 basis points (0.05%) of the transaction value. For transactions in excess of Dh1 billion over the period of 1 year, the cost will range to one basis point.

In other words, an investor who trades Dh500 million a year will be charged 5 basis points over the first 250 million and then a commission lower than 250 million during the year.

The Exchange’s trading commission has also been reduced for transactions exceeding Dh1 billion by 90% from the previously implemented transaction fees which makes ADX one of the region’s least expensive stock markets in terms of trading commission. Prior to the implementation of this new initiative, ADX has set up a number of awareness sessions for the stakeholders in order to familiarize them with the new mechanism.

The number of institutional investors in the Abu Dhabi Securities Exchanges (ADX) at the end of May 2019 was 8395, including 6318 foreign investors. During the first five months of this year, institutional investors traded AED 1.5 billion compared to Dh890 million in the same period of 2018, an increase of 73%. This shows a positive trend on a medium to long term basis.

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