Dubai – Mubasher: Al Ramz Capital, a 99% owned subsidiary of Al Ramz Corporation Investment and Development, has implemented the first Covered Short Selling (CSS) using the Stock Lending and Borrowing (SLB) facility on the Abu Dhabi Securities Exchange (ADX).

The exchange's SLB facility enables investors to promote the yield of long-term holdings by lending securities to borrowers for an annualised fee while retaining all the rights of holding the securities, according to the ADX announced on Thursday.

In addition, the SLB helps investors to hedge portfolios by facilitating covered short-selling.

The Chairman of ADX, Mohamed Ali Al Shorafa Al Hammadi, said: "The launch of the CSS service is part of the exchange’s strategy to support the diversification of investment tools and providing investors with a broader range of hedging mechanisms."

Meanwhile, the Chairman of Al Ramz, Dhafer Sahmi Al Ahbabi, commented: "We are pleased to be the first financial services company in the UAE capital markets to utilise the Stock Lending and Borrowing facility and execute a covered short selling transaction."