UAE stock markets halve down limits to contain volatility – The National

UAE stock markets halve down limits to contain volatility – The National

UAE stock markets halve down limits to contain volatility. DFM and ADX reduce level at which markets stop trading on instructions from regulator. The UAE's two main stock markets, the Abu Dhabi Securities Exchange and the Dubai Financial Market, are halving the down-limit that causes trading to cease once losses hit a specified level.. The companies operating both bourses said the loss thresholds triggering a cessation of trading had been reduced to 5 per cent, from 10 per cent previously, on instructions from the regulator, the Securities and Commodities Authority.. The limits will be imposed with immediate effect from Wednesday morning's opening.. "DFM always keeps a close eye on market developments and activity in order to take all the necessary actions to contain fluctuations, especially the recent fluctuations due to the coronavirus.. Today's measure is a result of DFM and SCA's joint efforts to contain these fluctuations," said DFM chairman Essa Kazim.. its down limit stops trading for a brief period while an auction takes place to settle on new levels.. By close on Monday, the Dubai Financial Market had declined in value by 33.4 per cent since the start of the year and the Abu Dhabi main index was