Dubai, UAE – Dubai Financial Market (DFM) has announced an update to the minimum tick size structure for listed securities, in a move aimed at enhancing market efficiency, reducing trading costs, and improving the accuracy of price discovery, while maintaining market liquidity.
According to the circular issued by the market, this update comes as part of the ongoing review of the Tick Size mechanism, with more precise price increments being adopted for mid-priced securities in a way that reflects actual trading patterns and aligns with international best practices.
DFM explained that the updated structure will apply to all securities listed on the market, including shares, exchange-traded funds (ETFs), and real estate investment trusts (REITs), particularly those listed under board identifiers 505, 510, and 520 in the trading system.
The changes are scheduled to take effect on April 6, 2026. On that date, all open orders will be automatically validated in accordance with the new rules. The market noted that orders that do not comply with the updated tick size structure will either be rejected or will require amendment.
Under the new structure, the minimum tick size will remain at AED 0.001 for securities priced below AED 1, and AED 0.01 for the price range of AED 1 to AED 9.99. For higher price brackets, the updated tick sizes will be AED 0.02 for prices between AED 10 and AED 49.98, AED 0.05 for prices between AED 50 and AED 99.95, and AED 0.10 for securities priced at AED 100 and above. This revision reflects a move toward improving pricing flexibility in the mid- and high-price segments, allowing price movements to better match the market value of securities and enhancing the efficiency of order execution and daily trading activity.
