Abu Dhabi Securities Exchange (ADX) announced that daily price limits for exchange‑traded funds (ETFs) and futures contracts will be removed, taking effect on 3 August 2026.
Removal of price limits aims to boost market efficiency
The change is intended to support more efficient price formation, continuous liquidity provision and smoother trading for investors. By allowing ETF and futures prices to reflect new information in real time, ADX expects fewer trading halts and pauses that were previously triggered by daily bands. This step builds on ADX’s role as the most liquid ETF hub in the MENA region, where a broad range of products—including thematic and Sharia‑compliant funds—already give investors diverse options. Eliminating the caps therefore enhances execution speed and reduces friction for those seeking efficient investment execution and diversified exposure.
In addition, the removal of price limits is designed to further develop ADX’s derivatives market. Investors will gain greater flexibility to hedge exposures and implement investment strategies without the constraints previously imposed by price bands. ADX emphasises that it will continue to manage intraday volatility, applying temporary trading pauses only in exceptional circumstances to maintain an orderly market.
Broader strategy and market infrastructure
The move aligns with ADX’s broader strategy to give investors greater agility and to provide a modern market infrastructure that supports efficient capital allocation, enhanced liquidity and advanced risk management. ADX’s governance framework, established under Local Law No. (3) of 2000 and reinforced by its conversion to a public joint‑stock company on 17 March 2020 under Law No. (8) of 2020, underpins its ability to adapt quickly to market needs. The ADX Group, which includes wholly‑owned subsidiaries AD Depository and AD Clear, supports transparent and resilient capital markets across trading, clearing, settlement and custody.
As the second‑largest exchange in the Arab region by market capitalisation, ADX’s strategy of delivering stable financial performance through diversified revenue streams is aligned with the UAE’s national development agenda “Towards the Next 50”, which seeks to build a sustainable, diversified and high‑value‑added economy. By modernising its trading rules while preserving mechanisms to safeguard market order, ADX aims to reinforce confidence among both domestic and regional participants.
Frequently asked questions
What is the new rule for ETFs and futures on ADX?
The Abu Dhabi Securities Exchange (ADX) will remove daily price limits on ETFs and futures on 3 August 2026, aiming to improve price formation, liquidity, and trading flexibility for investors.
Why is ADX removing price limits on ETFs and futures?
ADX is removing price limits to boost market efficiency, support more efficient price formation, and provide continuous liquidity provision and smoother trading for investors.
What will happen to trading halts on ADX after 3 August 2026?
ADX expects fewer trading halts and pauses after removing daily price limits, as prices will be able to reflect new information in real time.
How will the removal of price limits affect investors?
Investors will gain greater flexibility to hedge exposures and implement investment strategies without the constraints of price bands, experiencing enhanced execution speed and reduced friction.
What is ADX's strategy for developing its derivatives market?
ADX aims to further develop its derivatives market by removing price limits, allowing investors to hedge exposures and implement strategies more efficiently.
What is the significance of ADX's role as the most liquid ETF hub in the MENA region?
Being the most liquid ETF hub in the MENA region gives investors a broad range of products, including thematic and Sharia‑compliant funds, providing diverse investment options.
