Nasdaq and ADX Sign New Marketplace Technology Agreement; Single equity and index futures will provide investors with hedging tools
The Abu Dhabi Securities Exchange (ADX) plans to launch single stock and index futures on its new derivatives market in the fourth quarter of this year, the Abu Dhabi government media office said on Wednesday.
The exchange plans to use Nasdaq technology, including the matching engine and real-time clearing and settlement services, she said on Twitter.
“The exchange plans to launch single stock futures and index futures in the fourth quarter of this year before expanding to a wider range of derivatives. The initiative will further diversify investment opportunities and provide investors with hedging tools for effective risk management, ”according to the ADX press release on Wednesday.
The derivatives market will be accompanied by the introduction of central counterparty clearing (CCP) to promote clearing efficiency, stability and market confidence, the statement said.
Expanding market capitalization
Mohammed Ali Al Shorafa Al Hammadi, Chairman of ADX, said the stock market is poised to dramatically improve liquidity and expand market capitalization through the “ADX One” strategy, which provides a clear roadmap for the further development of a dynamic stock exchange.
“By deepening our capital markets and increasing the range of innovative products and services, we support the UAE’s strategy of economic diversification, providing growing companies with favorable access to global capital and enabling investors to participate in the ambitions of the United Arab Emirates, “said Al Hammadi.
ADX and Nasdaq sign agreement
ADX has taken a key step towards launching a derivatives market this year by signing an agreement with the Nasdaq to provide market technology solutions, including matching, clearing and time settlement technology. real. It is rapidly expanding asset classes and developing new offers for regional and international investors.
The ADX General Index (ADI) recently hit 7,700 points for the first time, supported by a series of quotes and increased participation from international investors. In addition, the index has gained 52% since the start of the year, making it one of the best performing stock indexes in the world.
“We are convinced that the launch of a derivatives market will be another important step, allowing stock market investors who wish to implement sophisticated trading strategies. Our strategy is to ensure that investors and issuers derive significant benefits from a sophisticated market by investing more in technology, expanding our offering and attracting a wider range of institutional investors, ”said Saeed Hamad Al Dhaheri , CEO of ADX.
ADX market leader
Lars Ottersgard, Executive Vice President and Head of Nasdaq Market Technology, said ADX continues to be an industry leader in innovating and evolving the Middle East capital market ecosystem.
“By leveraging Nasdaq’s robust and flexible technology solutions, ADX can evolve its efforts to grow into a leading derivatives market and one of the largest multi-asset markets in the Middle East. We look forward to advancing our technology partnership and supporting ADX on its growth journey, ”said Ottersgard.
Nasdaq’s end-to-end market technology powers more than 2,300 companies in 50 countries, spanning the global financial industry, including capital market infrastructure operators, market participants, banks and regulators.