Abu Dhabi - April 6th 2013: Abu Dhabi Securities Exchange (ADX) announced that it is continuing the process of enhancing Delivery Versus Payment (DVP) model, which ADX launched in May of 2011, through applying Buyer Cash Compensation (BCC) settlement procedure. The new procedure, which will take effect in May 2013, means that a buying investor will be paid cash compensation in the unlikely event where securities are unavailable for delivery to the buying investor on settlement date.
With the implementation of BCC, ADX not only seeks to reinforce the current implemented DVP model, but also to keep in adherence with international standards for financial markets infrastructure. Especially since efficient and safe securities clearing and settlement systems are a necessary condition to ensure smooth functioning of payment systems and of the preservation of financial stability.
Commenting on the implementation of the upcoming procedure, Mr. Rashed Al Baloushi, CEO of ADX explained: "To create true value through innovation in today's economic climate is a real challenge - for any organization. We look forward to further collaborations with all of our stakeholders to drive the product development process forward."
Media Department
CEO of ADX added:"applying this new procedure reflects ADX's ongoing strategy to apply the best international practices in the fields of securities infrastructure. It will assist us in utilizing the necessary measures to strengthen our overall frameworks, minimize operational risk, and streamline processes for effective day to day operations which will be vital as we continue to enhance services we provide to our stakeholders."
ADX will be conducting briefing sessions for its market participants in order to explain the many aspects of this upcoming procedure.
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About ADX:
Abu Dhabi Securities Exchange (ADX) was established in November 2000 as the official stock exchange of the emirate of Abu Dhabi, the Federal Capital of the United Arab Emirates (UAE). ADX is a market for trading securities including shares issued by public joint stock companies, bonds issued by governments and corporations, exchange traded funds and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA).
ADX has 68 listed Securities and a market capitalization of AED 292 Billion ($79.4 billion USD) as of September 30th 2012 and an investor base of 914,564 as of the end of 2012. Of the total number of investors in the market 562,733 are UAE nationals, with 58 government entities, and 1,652 institutions. Individuals from the Gulf Corporation Council (GCC) accounted for 272,531, with 4 GCC government entities, and 318 GCC institutions. Individuals from Arab countries accounted for 47,856, with 81 institutions. Other nationals accounted for 27,294, with 2,037 institutions.
In alignment with the Abu Dhabi Government's Economic Vision 2030, ADX aspires to be the exchange of choice by developing the capital market through legal environment that ensures disclosure, transparency and integrity.
Please visit www.adx.ae for more information.
For more information, please contact:
Adel Al Dhaheri
Manager of Media Relations
Abu Dhabi Securities Exchange
Telephone No: +971 (2) 612 8716
Fax No: +971 (2) 612 8728
Mobile No: +97150 622 12 66
E-mail address: adelm@adx.ae
© Press Release 2013
