ADX Adds Five More Single Stock Futures to Its Vibrant Derivatives Market

Press release

Published October 7th, 2022 - 06:35 GMT

ADX Adds Five More Single Stock Futures to Its Vibrant Derivatives Market

Abu Dhabi Securities Exchange

Highlights

Abu Dhabi Securities Exchange (ADX) has introduced five more single stock futures in a further step to develop its derivatives market.

Starting from October 6th, stock futures on Abu Dhabi Islamic Bank (ADIB), Abu Dhabi Commercial Bank (ADCB), Fertiglobe, Borouge and AD Ports, will be available for trading on the ADX Derivatives market. The addition of new contracts has doubled the total number of derivative products on ADX to 10 in less than a year. Furthermore, market participants will be able to trade on leverage and hedge their equity exposure using these contracts.

The derivatives market was introduced in November 2021 to provide investors and traders with access to two-way market exposure, while providing for hedging and leveraging capabilities. The market launched with trading in the single stock futures of Etisalat, First Abu Dhabi Bank, International Holding Company, ADNOC Distribution and Aldar Properties. This was followed in June 2022 by the launch of futures contracts on the FTSE ADX 15 (FADX 15) Index.

Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer of Abu Dhabi Securities Exchange commented: “The expansion of products on the derivatives market is important for the development of ADX as a vibrant trading hub for both investors and issuers. ADX is committed to broaden its range of offerings to meet the demands of its expanding investor base.”

The ADX derivatives market has rapidly become one of the most active in the region due to a blend of strong partnerships and world class infrastructure. ADX sealed an agreement with Nasdaq in September 2021 to put in place marketplace technology solutions for the derivatives market, including matching, real-time clearing, and settlement technology. The launch of the derivatives market was also accompanied by the introduction of Central Counterparty Clearing (CCP) to promote clearing efficiency, stability, and confidence in the market. In addition, market makers have provided liquidity, facilitating an efficient and orderly market.

Background Information

Abu Dhabi Securities Exchange

Abu Dhabi Securities Exchange (ADX) was established on 15th of November 2000 by Local Law No. (3) of 2000, the provisions of which vests the Market with a legal entity of autonomous status, independent finance and management, and gives ADX the necessary supervisory and executive powers to exercise its functions.

Moreover, ADX has the authority to establish centers and branches outside the Emirate of Abu Dhabi, and so far it has done so in Al Ain, Zayed City, Fujairah, Ras Al Khaimah and Sharjah.

ADX's board of directors is comprised of seven members nominated by Amiri Decree. The members of the board hold office for a term of three years. The first board of directors was constituted by Amiri Decree No. (8) of 2000.