The Abu Dhabi Securities Exchange (ADX) and the National Association of Securities Dealers Automated Quotations (Nasdaq) have validated an agreement for technology solutions. This agreement will serve as an essential step that will facilitate the bourse to introduce a derivatives market in 2021 as it serves to improvise on its product offering.
According to this agreement, Nasdaq will provide marketplace solutions to ADX. These solutions are inclusive of real-time clearing, matching, and settlement technology indicated a statement released by ADX on 1st September 2021.
ADX wishes to release index futures and single stock futures in the Q4 of 2021. The exchange wants to initiate this preceding an expansion of the range of derivative products. This endeavor will further provide versatile investment avenues and give investors the hedging tools required for the effective management of risk, said the ADX statement.
The agreement will also release central counterparty clearing to encourage efficiency, stability, and boost the confidence of investors.
The chairman of ADX, Mohammed Al Shorafa, stated that ADX is seeking to essentially increase liquidity and facilitate market capitalization expansion through the ‘ADX One’ approach. The ADX One approach clears the road map to enhance the development of the vivacious exchange.
The chairman, Mohammed Al Shorafa, further indicated that the expansion of capital markets and enhancement of the range of products and services will support the middle eastern country’s economic development. Global companies will be able to benefit from promising access to capital. Investors from around the world will be able to take part in UAE’s ambitions for economic diversification.
The exchange is broadening its investable asset classes and is evolving its offerings for national and international investors. The region’s bourse continues to overachieve its peers in the Gulf Cooperation Council (GCC).
The ADX General Index bypassed 7,700 points for the first time in 2021. The index rating was boosted owing to a series of new listings and growing investments from investors around the globe. The benchmark index increased 52%.
On 31st August 2021, ADX stated that it has relinquished the minimum commission fee on the businesses of all listed securities. This waiving-off was done to enhance trading via smaller investors.
The agreement is predicted to enhance liquidity and multiply volumes of small trades, which are usually performed by individual investors, stated ADX.
Earlier this week, the exchange stated that it would minimize commissions by 50% and include an extra hour to the trading time as it pursues to increase liquidity in the market.
About ADX
The Abu Dhabi Securities Exchange (ADX) is a market for trading that includes – shares that are issued by joint-stock companies that are public, government and corporations’ bonds, exchange-traded funds, and any other miscellaneous financial tools that are permitted by the UAE Securities and Commodities Authority (SCA).
The exchange is one of the largest markets in the middle eastern region. Its strategy is to provide a constant financial performance through versatile sources of income. These strategies resonate with the principles of the UAE ‘Towards the Next 50’ program. UAE’s strategic development system is charted out in this program. It aims to construct a diversified, sustainable, and high-value economy.
About Nasdaq
National Association of Securities Dealers Automated Quotations is the American stock market that monitors electronic securities trading globally. The market was industrialized by the National Association of Securities Dealers (NASD) and is supervised by the Securities and Exchange Commission (SEC).
The American stock market boasts leading market technology that supports over 130 of the global market infrastructure firms which are inclusive of the clearinghouses, exchanges, and central securities regulators and depositors.