Arab Post Staff
The Abu Dhabi Securities Exchange has introduced a derivatives market while the exchange is implementing initiatives to develop Abu Dhabi’s capital markets and bring its products and services in line with global partners. With the launch of single stock futures, the new market will give investors and traders the opportunity to benefit from increased leverage, two-way market exposure and hedging capabilities.
Trading in the single stock futures of Etisalat, First Abu Dhabi Bank (FAB), International Holding Company (IHC), ADNOC Distribution and Aldar Properties started today, with more securities to be added later this year and in 2022. Index futures will be introduced. in the first quarter of 2022, ahead of the expansion into a wider range of derivative products. The derivatives market uses market technology delivered by Nasdaq.
Three market makers including ADQ’s Q Market Makers, BHM Capital and Al Ramz Capital join the ADX Derivatives market to provide liquidity on the new platform, facilitating an efficient and orderly market. The distribution of short-term marginal trading licenses to more brokerages will allow for increased participation. The launch of the derivatives market was accompanied by the introduction of central counterparty clearing (CCP) to promote clearing efficiency, stability and confidence in the market.
The “ADX One” strategy, launched in early 2021, aims to bring a wider range of products and services to market and along with state-of-the-art infrastructure in partnership with global market leaders. The market capitalization of the Abu Dhabi General Value Market Index has recently nearly doubled since the beginning of the year, rising to AED 1.4 trillion, supported by a series of listings and increased international investment. Meanwhile, the benchmark Abu Dhabi General Index (ADI) gained 56% during the first ten months of this year, making it one of the best-selling equity indices in the world in the same period.