To qualify as a big block deal on the ADX’s E-Trading system, the securities to be traded must be a minimum of what proportion of the issuer’s capital?
A big block deal on the ADX’s E-Trading system must involve securities that are at least 1.0% of the issuer's capital. This threshold ensures that large transactions, which could significantly affect the stock's market price, are categorized appropriately as big block deals. The rule helps to distinguish between regular trades and larger institutional trades, which often have different liquidity and market impact considerations. This also provides transparency for market participants regarding the size and nature of the transaction.
[Reference: CISI UAE Financial Rules and Regulations — Big Block Deal Requirements on ADX, Section 6.1.2 (2023)., ]
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit