Abu Dhabi’s ADX to unveil derivatives market; Utilizing Nasdaq technology

By Shilpa Annie Joseph, Official Reporter
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Abu Dhabi-based regional stock exchange, Abu Dhabi Securities Exchange (ADX) has signed an agreement with Nasdaq to supply marketplace technology solutions, including matching, real-time clearing, and settlement technology, in preparation for the opening of a derivatives market later this year.

The exchange expects to debut single stock futures and index futures in the fourth quarter of this year before expanding to a larger range of derivative products. The initiative would broaden investment options and give hedging tools to help investors manage risk more effectively.

The derivatives market will be accompanied by introducing central counterparty clearing (CCP) to boost clearing efficiency, stability, and confidence in the market, as per the statement.

Mr. Mohammed Ali Al Shorafa Al Hammadi, Chairman of ADX said, “ADX is on a journey to significantly enhance liquidity and expand market capitalization through our ‘ADX One’ strategy, which provides a clear road map for further development of a vibrant exchange. By deepening our capital markets and increasing the range of innovative products and services, we are supporting the UAE’s strategy for economic diversification, providing growth companies with favorable access to global capital and allowing investors to participate in the UAE’s ambitions.”

Saeed Hamad Al Dhaheri
Saeed Hamad Al Dhaheri

“Our commercial relationship with Nasdaq dates to ADX’s establishment in 2000, and over the last two decades, we have collaborated on a range of initiatives to ensure investors benefit from efficient market infrastructure technology. We are confident that the launch of a derivatives market will be another important milestone, empowering investors on the exchange who wish to implement sophisticated trading strategies. Our strategy is to ensure that investors and issuers derive significant benefits of a sophisticated marketplace by investing further in technology, broadening our offering, and attracting a wider range of institutional investors.”

“ADX continues to be an industry leader in innovating and evolving the Middle East’s capital market ecosystem. By leveraging Nasdaq’s robust and flexible technology solutions, ADX can further evolve its endeavors to expand into a leading derivatives marketplace and one of the largest multi-asset marketplaces in the Middle East,” noted Mr. Lars Ottersgard, Executive Vice President and Head of Nasdaq Market Technology.

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