Abu Dhabi Securities Exchange, one of the three bourses in the UAE, will start a so-called “big blocks market” during the existing trading sessions from March 3.
“Some trades with large volumes, which may be for strategic reasons, are often pre-arranged deals due to their size and nature. Trading them through the regular market may not reflect their actual prices and circumstances,” Rashed Al Baloushi, deputy chief executive officer and director of operations, said in an emailed statement on Sunday.
The requirement for big block trades are as follows: the number of shares to be traded must not be less than one percent of the capital of the company; the initiator of the trade must be one person while the counter-parties should not exceed ten investors; and the price of the transaction should not differ by more than 25 percent from the previous closing price, according to the statement.
Big blocks will be traded through brokers during normal trading hours and will be displayed in a separate market watch, it said. The prices will not affect the closing price of the security nor will they be included in the index or high and low statistics.
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