SCA Securities Trading and Market Operations

Question 1

What are the trading hours for UAE securities exchanges?

Accepted Answer

Pre-opening session followed by continuous trading from 10:00 AM to 2:00 PM UAE time (Sunday to Thursday)

Answer

24-hour trading

Answer

Same as New York Stock Exchange hours

Answer

Trading occurs only three days per week

Question 2

What is the T+2 settlement cycle used by UAE exchanges?

Accepted Answer

Securities trades settle two business days after the trade date, with delivery of shares and payment of funds occurring simultaneously

Answer

Trades settle instantly

Answer

Settlement takes two weeks

Answer

T+2 means two months

Question 3

What types of orders can investors place on UAE securities exchanges?

Accepted Answer

Market orders, limit orders, stop orders, and special condition orders (fill-or-kill, immediate-or-cancel)

Answer

Only market orders

Answer

Only buy orders

Answer

Order types are not standardized

Question 4

What are the SCA regulations on short selling in UAE markets?

Accepted Answer

Regulated short selling is permitted under specific SCA rules including borrowing securities, disclosure requirements, and market maker exemptions

Answer

Short selling is completely prohibited

Answer

Short selling is unrestricted

Answer

Only institutional investors can short sell

Question 5

What is the role of market makers on UAE exchanges?

Accepted Answer

Provide continuous two-way quotes (bid and ask) to enhance market liquidity, reduce spreads, and facilitate smoother trading for designated securities

Answer

Market makers set the listing price

Answer

Market makers only trade for their own profit

Answer

Market makers are government employees

Question 6

What circuit breaker mechanisms exist on UAE exchanges?

Accepted Answer

Price limits and trading halts triggered when security prices move beyond specified percentages (typically 10-15%) to prevent excessive volatility

Answer

No circuit breakers exist

Answer

Circuit breakers only apply to individual stocks

Answer

Trading never stops once it begins