ADX and FTSE Russell unite to develop benchmark blue chip index

By Arya M Nair, Official Reporter
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The Abu Dhabi Securities Exchange (ADX) and FTSE Russell, a subsidiary of the London Stock Exchange Group, have partnered to develop the FTSE ADX 15 Index, a benchmark blue chip measure that will support ADX’s recently launched derivatives market and the creation of ETFs and other index-tracking investment vehicles.

The benchmark index, also known as the FADX 15, will be launched on March 30 and will include the largest and most liquid 15 companies on the ADX, carefully selected using a combination of the free float-adjusted market capitalization and median daily trading value.

The FADX 15 is the first in a series of co-branded indices that are being developed by ADX and FTSE Russell, and closely follows the announcement of the new FTSE ADX sector indices that leverage the Industry Classification Benchmark (ICB), a global industry classification standard.

Saeed Hamad Al Dhaheri
Saeed Hamad Al Dhaheri

“The introduction of the FTSE ADX 15 Index is a major milestone that underscores the exchange’s commitment to providing market participants with cutting-edge investment products that align with world-class standards. The indices developed in partnership with FTSE Russell will support our aim to create a vibrant and liquid capital market that provides sustainable growth opportunities for investors around the world.”

As part of the exchange’s ambitious strategy launched last year to attract more international investors and enhance liquidity, ADX has broadened its asset class offerings, including the introduction of single stock futures in the fourth quarter of 2021. The FADX 15 will be used as the basis for the launch of new index products on ADX this year.

Mr. Arne Staal, Chief Executive Officer, FTSE Russell, said that “We welcome the launch of the new FTSE ADX 15 Index as the first co-developed index under the FTSE ADX strategic partnership. This collaboration creates next-generation benchmarks for this vibrant and growing market and brings FTSE Russell’s world-class index expertise to one of the largest exchanges in the Gulf region.”

Related: ADX adopts FTSE Russell’s Industry Classification Benchmark for its listed equities