ADX unites with London’s FTSE Russell to develop new benchmark indices

By Shilpa Annie Joseph, Desk Reporter
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The Abu Dhabi Securities Exchange (ADX) has entered into a partnership with FTSE Russell, a subsidiary of the London Stock Exchange Group, to develop co-branded indices.

According to the statement, it will support the exchange’s recently launched derivatives market and bring the ADX’s stock performance measures into line with global standards.

“As of 10th of January 2022, the FTSE ADX General Index is replacing the ADX General Index, and FTSE ADX sector indices will take the place of the existing sector indices, leveraging the Industry Classification Benchmark,” as per the Abu Dhabi Securities Exchange.

The ADX exchange is the first in the region to appoint FTSE Russell as its index administrator. The alliance will co-develop additional new indices to support ADX’s objective of launching tradable new index products on its market.

The exchange launched single stock futures in the fourth quarter of 2021 following an agreement sealed in September with NASDAQ to deliver matching, real-time clearing, and settlement technology as ADX broadens its asset class offerings, as per the reports.

Saeed Hamad Al Dhaheri
Saeed Hamad Al Dhaheri

“Our partnership with FTSE Russell is part of ADX’s wide-ranging strategy to develop a dynamic exchange, which includes investment in state-of-the-art market technology and increasing the opportunity set for investors and issuers. The new range of FTSE-ADX indexes will provide robust benchmarks and support the listing of index derivatives, ETFs other index-based products on the exchange.”

Mr. Arne Stall, Chief Executive Officer of FTSE Russell said, “ADX is an innovative and vibrant marketplace that empowers the UAE’s economy. We are delighted to work together to strengthen the country’s capital markets with open access to data, pricing, and performance metrics.”

“Our collaboration confirms FTSE Russell’s commitment to the Middle East region and we look forward to announcing a range of new benchmarks in the coming months,” Mr. Stall added.

The ADI, ADX’s benchmark index, crossed the 9,000-point threshold in 2021 for the first time. The benchmark gauge rose 68 percent last year, making it one of the best performing exchanges in the world. The exchange’s market capitalization more than doubled to $436 billion (AED 1.6 trillion) at the same period, with net foreign investment reaching $4.1 billion (AED 15.2 billion), as per the reports.

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